Know About The History Of Forex Trading.
If you are a businessman or a student of the subject of business, then you ought to know about the history of forex trading. This is an interesting history, with steady progress, modest changes in the long process of the evolution of money. The time and place of the origin of money has been long disputed by various historians. Some believe that the ancient Egyptian pharaohs were the first to introduce money in the form of coins; while some others believe that the Babylonians were the ones who created money in the form of currencies and thus are of more importance and relevance to the study of the past and present study of the foreign currency exchange market.
Historical events of the financial
In the history of forex trading there are quite a few turning points, which have contributed to a great extent in shaping the forex market that we see and know of in the present day world. One of these major turning points took place after the events of the First World War. Due to the fickleness and the constant fluctuation of the forex market (which usually leant towards disastrously low funds), the Central banks of almost all the countries started offering their customers the option of converting their currencies in the form of gold. This was beneficial to the wealthy customers of the bank (to a certain extent) as they could safely conserve their financial funds in the form of gold rather than cash. But this convertibility to gold did not actually succeed in assisting the customers of the bank all that much. The continual pressures of the war had a catastrophic effect on the financial market, which eventually resulted in the Great Depression in the year 1931. As a result of this, the gold convertibility option was removed. The phase between the year 1931 and 1973 brought about a lot of financial changes in the forex market. These are some of the major historical events of the financial world that have helped in creating the history of forex trading.
The second phase of the history of forex trading, when another set of changes took place in the forex market was in during the time of the Second World War. The end of the World War II saw the initiation of the Bretton Woods Agreement, which was implemented by the victorious America on the month of July in 1944. But in the year 1970, the Bretton Woods Agreement collapsed, which in turn resulted in the suspension of the gold convertibility option (it was reinstated when the Bretton Woods Agreement was introduced).
Mking forex trading easier
All these vents have greatly contributed in shaping the history of forex trading. These vents have played a very big role in making the forex market the largest financial and global market of the world, reducing the restrictions involved when completing business transactions, thereby making forex trading easier and more effective.