The origin of Forex trading can be traced to numerous centuries past.
In early days, the barter system, where the value of goods was expressed when it comes to other goods, was widely prevalent. The apparent limits of the barter system sparked the creation of more generally accepted medium of exchange with a common base worth.
People of Asia & Africa used stones, feathers and even teeth, but shortly coins produced from metals including gold and silver, became an accepted way of payment. Afterwards in the middle ages, paper kind of governmental I.O.U was used by certain established nations, which forms the basis of today's monies.
Gold Standard
In international trade the quantity of gold that could be bought for it defined the worth of cash. This system was called "Gold standard." At those times the strongest currency in the world was the British Pound. This system functioned fairly nicely until World War I.
During the war, when the expenses of the European countries improved drastically, all except USA abandoned the gold standard. Though the European nations tried to return to the gold standard after World War I, the World War II, the Great Depression, along with the world monetary crisis stood in the way of those strategies.
Bretton Woods System
Before the ending of World War II, the Allied nations felt the need to set up a monetary system to fill the "Gold Standard" void. So, in July 1944, the Friends assembled at Bretton Woods, New Hampshire, to formulate the Bretton Woods system of international monetary management, which instituted the following:
Fixed exchange rates system
U.S. dollar to become a primary reserve currency instead of gold
The creation of three international agencies:
o International Monetary Fund (IMF)
On August 15, 1971, U.S. President Richard Nixon closed the gold window, declaring that it would no longer exchange gold for the U.S. dollars as the treasury lacked adequate gold. This indicated the end of Bretton Woods System.
Present Exchange Rates
The world at last accepted using floating foreign exchange rates during the Jamaica understanding of 1976, removing using the gold standard, after the Bretton Woods system broke down. Most authorities employ one of the subsequent three exchange rate systems that are used till date:
Dollarization
Managed floating rate
Today Forex has become one of the largest world markets (average daily dollar volume of USD 4 trillion) with enormous growth potential.
You can conveniently buy and sell all leading currencies in mass through UAE Exchange. You get the most competitive foreign exchange service rates coupled with personalised customer care.
In early days, the barter system, where the value of goods was expressed when it comes to other goods, was widely prevalent. The apparent limits of the barter system sparked the creation of more generally accepted medium of exchange with a common base worth.
People of Asia & Africa used stones, feathers and even teeth, but shortly coins produced from metals including gold and silver, became an accepted way of payment. Afterwards in the middle ages, paper kind of governmental I.O.U was used by certain established nations, which forms the basis of today's monies.
Gold Standard
In international trade the quantity of gold that could be bought for it defined the worth of cash. This system was called "Gold standard." At those times the strongest currency in the world was the British Pound. This system functioned fairly nicely until World War I.
During the war, when the expenses of the European countries improved drastically, all except USA abandoned the gold standard. Though the European nations tried to return to the gold standard after World War I, the World War II, the Great Depression, along with the world monetary crisis stood in the way of those strategies.
Bretton Woods System
Before the ending of World War II, the Allied nations felt the need to set up a monetary system to fill the "Gold Standard" void. So, in July 1944, the Friends assembled at Bretton Woods, New Hampshire, to formulate the Bretton Woods system of international monetary management, which instituted the following:
Fixed exchange rates system
U.S. dollar to become a primary reserve currency instead of gold
The creation of three international agencies:
o International Monetary Fund (IMF)
On August 15, 1971, U.S. President Richard Nixon closed the gold window, declaring that it would no longer exchange gold for the U.S. dollars as the treasury lacked adequate gold. This indicated the end of Bretton Woods System.
Present Exchange Rates
The world at last accepted using floating foreign exchange rates during the Jamaica understanding of 1976, removing using the gold standard, after the Bretton Woods system broke down. Most authorities employ one of the subsequent three exchange rate systems that are used till date:
Dollarization
Managed floating rate
Today Forex has become one of the largest world markets (average daily dollar volume of USD 4 trillion) with enormous growth potential.
You can conveniently buy and sell all leading currencies in mass through UAE Exchange. You get the most competitive foreign exchange service rates coupled with personalised customer care.
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