Brief history of the market of currency Forex

Forex, forex, forex market, forex finance creation history

Forex or FX is an acronym for Foreign Exchange (Exchange of foreign currencies), also known as the foreign exchange market, or currency exchange offers an enormous potential for profitability.

The FOREX currency market is relatively young compared to other international speculative markets. It is interesting to note that despite its short history, the Forex market is the world's largest financial market. Thus, before proceeding with its technical introduction, it is worth mentioning this brief description of its history. Most of the transactions in this market have been held in the past 24 years. Large operators such as national banks and multinational corporations enjoyed in the past of the privilege of participating in this market.

In 1944 at Bretton Woods, New Hampshire (State Northwest of the United States) the major Western industrialized countries agreed to a "stabilization" System. A nominal value of major currencies in relation to the American dollar, which in turn was stabilized at $35.00 connection with an ounce of gold was established. This is known as the base of gold (gold standard).

In 1971 President Nixon of the United States abandoned the gold base, stabilizing all major currencies directly with the American dollar.

In 1978, after the second important devaluation of the American dollar, the fixed-rate mechanism was completely abolished by the U.S. and replaced by the floating rate Government. At the same time, the floating rate was adopted by other major currency, transforming each one of these currencies or goods or commodities, currencies fluctuate in value depending on the forces of supply and demand. This type or exchange rate of currencies of free floating among all the currencies of the world marked the birth of the Forex currency market.

Forex, forex, forex market, forex finance creation history