Forex History
Forex History begins August 15, 1971, when U.S. President Richard Nixon announced his decision to abolish the free convertibility of the dollar into gold (abandoned the gold standard).It destroyed the system of stable exchange rates and was the culmination of the crisis of the postwar Bretton Woods monetary system. Been replaced by the Jamaican currency system, the principles which were laid by 16 March 1973 on the island of Jamaica, with the participation of the 20 most developed states of non-communist bloc. The essence of the changes dealt mainly with the more liberal policy on gold prices for a number of currencies.But this led to inevitable variations in the internal exchange rates of these currencies.
Monetary market in its present form appeared only in the twentieth century. Market currency trading qualifies periodically by successive phases of increasing the frequency of price changes (volatility of exchange rates), as well as their relative stability. Up to the forties of last century base currency trading was London and the UK currency is the currency for the formation of foreign exchange reserves and settlements. As a result of the Second World War the UK economy has suffered massive damage. One of the economically developed countries, which on the contrary even improved their economies were the United States of America.Therefore, in 1944 between the United States, France and Britain was signed Brett Vudssky agreement under which United States dollar became the reserve currency for the major capitalist countries (and in vain. - Approx ed.).
Monetary market in its present form appeared only in the twentieth century. Market currency trading qualifies periodically by successive phases of increasing the frequency of price changes (volatility of exchange rates), as well as their relative stability. Up to the forties of last century base currency trading was London and the UK currency is the currency for the formation of foreign exchange reserves and settlements. As a result of the Second World War the UK economy has suffered massive damage. One of the economically developed countries, which on the contrary even improved their economies were the United States of America.Therefore, in 1944 between the United States, France and Britain was signed Brett Vudssky agreement under which United States dollar became the reserve currency for the major capitalist countries (and in vain. - Approx ed.).
Currencies have been tightly tied to U.S. currency (to organize so-called corridors for currency), and he (the dollar) was pegged to gold price rate of: $ 35 per ounce of gold. The emergence of the Forex market in its present form occurred in the 70 years of 20 century, when they were introduced independently by changing exchange rates. This meant that now the currency of any country could carry out any operations any person. The cost of this currency is currently determined only by the current supply and demand in the currency market. Due to the introduction of a changing rate surprisingly quickly grew the volume of currency trading in the Forex market.
To note, the turnover per day in 1977 was approximately $ 5 billion in the United States, and in 1987 he became a roughly 600 billion is currently the daily volume of transactions in foreign exchange trading in Forex, is estimated at 4.4 5 trillion dollars, which is comparable to the three annual budgets of the United States.Precise data is not as it OTC market, and there is no requirement of compulsory registration and publication of data about transactions. Part of this volume provides a margin trade, in terms of which are allowed to enter into contracts for amounts significantly higher than actual capital transaction participant.Regardless of the nature and purposes of transactions, a large daily turnover is a guarantee of high liquidity in this market.
To note, the turnover per day in 1977 was approximately $ 5 billion in the United States, and in 1987 he became a roughly 600 billion is currently the daily volume of transactions in foreign exchange trading in Forex, is estimated at 4.4 5 trillion dollars, which is comparable to the three annual budgets of the United States.Precise data is not as it OTC market, and there is no requirement of compulsory registration and publication of data about transactions. Part of this volume provides a margin trade, in terms of which are allowed to enter into contracts for amounts significantly higher than actual capital transaction participant.Regardless of the nature and purposes of transactions, a large daily turnover is a guarantee of high liquidity in this market.
The emergence of new technologies in the field of currency trading,reflected in the fact that organized the automated dealing systemsand there was a transition to a virtual currency trading via the Internet. Dealing centers in different countries were combined into a single network, and electronic brokers in the Forex market havespecial electronic system. On this basis, significantly expanded the amount of the purchase - sale of foreign currency in the Forex market.
