Currency exchange has a long history, from the ancient Middle East and the Middle Ages, when trade began, according to the form of bills ready for international banks, which are transferable to a third party payments that allowed flexibility and growth in the exchange relationship.
The modern foreign exchange market is characterized by periods of high volatility (which is a frequency and magnitude of a change in the price) and the relative stability in the twentieth century format. In the mid-1930s, the British capital London, the currency and the pound sterling and the currency exchange was used to as a reserve currency. As in the old days when the exchange is at the telex or cable, the pound is the nickname of “cable”.
After the Second World War, when the British economy was destroyed, and the United States the only country free from war, the U.S. dollar, according to the Bretton Woods agreements, between the United States, Britain and France (1944) was the reserve currency for the capitalist countries and all currencies with U.S. dollar (through the creation of set pieces varies from banks upgraded power of the countries affected by actions or purchase of foreign currency). In return, the dollar was tied to gold at $ 35 per ounce. Therefore, the dollar as a reserve currency in the world. Under the same agreement, the International Monetary Fund (IMF) and significant financial support for developing and former socialist countries achieve the economic transformation.
To achieve these objectives, the IMF uses such instruments as Reserve trenches, which is a member to take their share of the booking with the time of payment, drawings and the trenches of Credit Status -by agreements. The letters are the form of the difference in the form of loans from the IMF compensatory financing extended financial assistance to countries with temporary problems generated by reductions in export earnings, the reservation of a funding mechanism will help ensure that the population density in commodities, the price stability in a product and the development of structures to support the financial problems in amounts or for a period longer than the circumference of the other plants.
In the late 70-s to the free floating of currencies was officially mandated that the most important milestone in the history of financial markets during the twentieth century lead to the formation of Forex related with the understanding. What is that money can per person and its value depends on the current strength of demand and supply in the market, not the points of the action that must be met. Rate the band has changed since the currencies were allowed to float freely with each other. While sales in the year 1977, every day at 5 million to 600 million U.S. dollars in 1987, came to U.S. $ 1 trillion mark in September 1992 and stabilized at about 1, 5 billion for 2000.
behind this dramatic growth in the volume are listed below. An important role in the possession of the increased volatility of currencies, more and more influence of the individual banks, the rates adopted by central banks, mainly on the exchange rate, increased competition in the housing market and in the same time, the concentration of companies from different countries, the technological revolution in the field of foreign exchange. The last presentation in the development of automated systems and the transition to the currency trading over the Internet. In addition to conventional systems, matching systems simultaneously connect all traders around the world, electronically reproduce the broker market.
The development of technology, software and telecommunications experience and have the level of refinement operators, their ability to create and manage the foreign exchange risk. Therefore, the refinement of the trade led to an increase of the scale.
