Old people say: “Only those who know their past can create good future”. Well, what a great proverb! Do you agree? And, looking back to the world history – it really works! So we can use it to nearly every part of our life. Including our business of course. Every person who is serious in his intentions to get to the top with Forex should definitely know the foreign exchange market – or simply saying Forex history. Do you know Forex History well? If no, than you’re on the right track to find out all of the Forex History just for you here!
Exchange Market Started in Babylon
Let’s go back into the past. I mean, really back – to the times of Babylon, where first trades started their existing. Of course, no money! Can you imagine that the Forex history started there and then? Barter system worked ok for ancient people, like, you bring the hog from hunting and your family already has something to eat. So you can give the hog to someone and get… Uhmm, for example the arrows - to protect your home. It’s hard to imagine, but, things like feathers, teeth and stones were exchangeable too. So, the little exchange market in the ancient times! Like, you are from one tribe and changing your teeth for feathers from other tribe. Hey, that’s already a foreign exchange market! Right? You may not agree but it really started like this.
Then, when materials like silver, gold, bronze were found and considered as the item of exchange, the market made the first step to start becoming just like one nowadays. Then, it went into making the coins out of those materials. They came before paper money in Middle Times. Now look what picture do we have? From exchanging hog for arrows, to having the paper money and coins as the objects of exchange. What a travel! Now, you sit right here – cause we’re gonna go further, straight to nearly First World War times where Forex History continues.
The Great Economic Depression
As you probably can remember from good old school times, banks already existed before WW – and you could always change your money into gold there. But in that time gold wasn’t the most reliable material in the world. When the piggy coin-box with gold of country is over, there comes a time of Great Depression. However, the changes and circulations in the exchange world happened too often before 1931 and foreign exchange markets were to stand still. From 1931 to 1973 foreign exchange market overlived many changes and many of them were because of the Bretton Woods agreement.
Bretton Woods Agreement Changed Everything
So, Forex history goes on! July 1944 was the great month of the great event. The Bretton Woods agreement caused the appearance of what we all now know so well – exchange rate! It was fixed as $35.00 per one ounce of Gold, the other currencies to Dollar were fixed too, the World Bank and IMF were founded – and all in one agreement, what an event for Forex History! This currency was founded to be permanent – ha, if only they could now how it would turn! Many believed that this currency trading system would live long, but however – there was one person called President Nixon to spoil it all and make the new wave of Forex History start with his decision (I bet he didn’t even know it). Trade deficits were growing, dollar was no longer the main currency trading unit, and Mr. Nixon left his mark in the American History (and the Forex History of course) as the one who smashed American Economics in long and sunny August, 1971.
So, what next? What part of Forex history started then? I would say – the MAJESTIC part. Foreign exchange market became the largest and the greatest world global market, opening its doors to everyone who was enough brave to come in. Many chances, many opportunities. Forex History moved on. No borders! No restrictions! Currency trading was open to provide the possibilities to get some profit.
European Forex History
European part of Forex History is quite clear. Europe created the European Monetary System in 1979, going on with Maastricht treaty in 1991. It helped fixing currency trading rates and then, providing Euro in 2002. Main center of European currency trading was and is London. In 80s this exact city started trading pounds for dollars and vice versa, which of course was good for currency trading in Europe and helped keeping the leader position in the foreign exchange market world.
Asian Forex History
What about Asian part of Forex history, it is very sad, because after South Asian Financial crisis in the 1997, all the Asian currencies were falling one by one before the face of the Mighty Dollar. Other currency trading rates, especially ones in South America, stayed vulnerable because of this too.
Today 1.9 Trillion USD Changing Hands Every Day
And then… Our history, Forex history, came to our times! While mortals… sorry, companies had to face the difficulties with the changeable currency environment, investors have found their own place to be – and this place was Forex. Starting with central banks and government, Forex history came to what we know now – global web, every house… Everywhere! The size of market was growing and now nearly no one can compete with Forex. It is everywhere. From ancient times to 2010, from sticks and feathers to dollars and euros, from banks to home PC’s – Forex History is forming. Forex History goes on now. Today, nearly 1.9 trillion US dollars are traded every day in the foreign exchange market. Guess, what, the profit potential is truly huge. Step in today and become a market participant, with our Forex trading systems you will be a successful trader in no time.
