Forex History

The Forex history and evolution can easily be traced back to the middle ages. At that time people from different countries used to trade their goods. They used to trade good based on their respective value. Soon this trading system saw the introduction of metals like silver and gold to pay for goods.

In the 19th century the 'gold standard' was introduced. It used the physical weight of gold as a set value to determine the price of certain goods. The gold standard that is paying for goods in the form of gold was prevalent till the year 1933.

The Bretton Woods System became popular. It was promoted by countries like US, UK and France for the creation of a stable environment that would allow the global economies to restore themselves. The Bretton Woods Accord helped to establish the pegging of currencies. Also, it established the International Monetary Fund (IMF) and the World Bank.

The year 1973 saw the emergence of the floating exchange rates. The year 1978 saw the free-floating system being officially mandated. However it finally ended up as a failure in the year in 1993.

In the year 1994, the introduction of Internet changes the way Forex is traded. Online currency made its debut the same year. Since then, the market has grown to a total circle of more than $1.9 trillion every day.

After 8 years in 2002, another major change happened. Euro arrived as a major force in Forex Trading, since then the market has never been the same.