Today's modern FOREX (Foreign Exchange Market) started in the development form in 1973, although money has been in our lives in many forms since the time of the ancient Pharaohs.
Paper bills and receipts are accredited to the Babylonians but the moneychangers from the Middle East were the first people to use coins for trading between different cultures and countries.
As far back as the middle ages, the requirement to trade in something other than coins emerged as the method of choice. Paper bills and receipts represented transferable payments of funds involving 3rd parties, and this method facilitated foreign currency trading for banking and merchant traders, resulting in increased regional economics.
During the period between the Middle Ages and WW1, the foreign exchange markets remained stable and speculation in the market was relatively low key. Following WW1, the FOREX markets became volatile and fast moving with a tremendous increase in speculative activity.
The general public and most financial institutions did not view speculation on the FOREX market with great interest or favor. The Depression and the removal of the gold standard in 1931 resulted in a serious lull in foreign exchange activities. In addition during the period between 1931 until 1973 the FOREX markets endured a series of changes that had an adverse effect on worldwide economies and interest in the market was minimal.
Since 1973, currencies of major industrialized nations have become more fluid, and are controlled mainly by the forces of supply and demand which affect the foreign exchange market. Prices were floated daily, with volumes, speed and price volatility all increasing throughout the 1970s. This gave rise to new financial instruments, market deregulation and trade liberalization.
Paper bills and receipts are accredited to the Babylonians but the moneychangers from the Middle East were the first people to use coins for trading between different cultures and countries.
As far back as the middle ages, the requirement to trade in something other than coins emerged as the method of choice. Paper bills and receipts represented transferable payments of funds involving 3rd parties, and this method facilitated foreign currency trading for banking and merchant traders, resulting in increased regional economics.
During the period between the Middle Ages and WW1, the foreign exchange markets remained stable and speculation in the market was relatively low key. Following WW1, the FOREX markets became volatile and fast moving with a tremendous increase in speculative activity.
The general public and most financial institutions did not view speculation on the FOREX market with great interest or favor. The Depression and the removal of the gold standard in 1931 resulted in a serious lull in foreign exchange activities. In addition during the period between 1931 until 1973 the FOREX markets endured a series of changes that had an adverse effect on worldwide economies and interest in the market was minimal.
Since 1973, currencies of major industrialized nations have become more fluid, and are controlled mainly by the forces of supply and demand which affect the foreign exchange market. Prices were floated daily, with volumes, speed and price volatility all increasing throughout the 1970s. This gave rise to new financial instruments, market deregulation and trade liberalization.
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