Want To Know About The History Of Forex?
Foreign currency exchange is one of the oldest and largest forms of business transaction in this world. You might be interested to know how this particular business came into existence. The foreign exchange market and trading was introduced almost at the same time as the introduction of money in the form of coins and/or currency notes. Before this evolution of the form of money took place, money existed in the primitive form of other objects. Let me elaborate, during the middle ages business transactions were completed by exchanging gifts and/or other objects. For instance if you were in the profession of making shoes and you wanted to buy meat from a butcher, you would probably have exchanged the meat for a pair or two of shoes. This form of object exchange was called the barter system. It lasted for quite a period of time until the coins and the currency came in. This is when the history of forex was created.
The most important in the history of forex
There is quite a lot of dispute among different historians as to the exact origin of money. But it widely believed that the pharaohs of ancient Egypt were the ones to introduce money in the form that we know and use as of this day. This was in the form of coins. However, the credit of creating money in the form of currency notes is given to the Babylonians, who it is said were the ones to first introduce the currency notes to the financial society. These events are the most important in the history of forex as they were the ones that made it possible for humans as such, around the world to begin and continue the business of foreign currency exchange.
It is believed that Middle Eastern traders were the first among the world to begin trading in foreign currency, to exchange coins and other forms of money between two different cultures. The forex market and trading grew from the time of the Middle Ages till the time of the First World War. This was a growing phase for the history of forex and thus this phase saw a lot of changes in the forex market and the different trading forms as well. But relatively, the forex market as well as trading was free of any speculative activity during this infantile stage of growth. But the onset and the aftermath of the First World War upturned the market situations completely, thus giving rise to a lot of speculative activities.
After the First and Second World Wars, a lot of significant changes were made to the forex market. These two events have contributed largely in shaping as well as creating the history of forex to a large extent. The Bretton Woods Agreement was formed and suspended in this phase as well. Thus it is essential to all that we be knowledgeable about the rich history of forex.