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A Brief History Of Forex
After the abolition of fixed exchange rates was born of a fundamentally new kind of business, which is based on the profit opportunities from exchange rate difference world currencies, because of their mutual courses are constantly subjected to changes due to the influence of market processes and newsflow on the economy. 

Forex and new technology

The Forex market is a vivid example of the use of constantly developing Internet technologies in everyday trade practices.

The Internet has influenced so widespread Forex, and Vice versa, in this market, "established" technologies of online trading which are used now in many other areas of business.

The main stages of development of the world financial market


In the United States held the famous Bretton woods conference, which for many years laid the foundations of the world monetary system.


USA begin so-called "Marshall plan" program for economic recovery of postwar Western Europe. In accordance with the plan, the economy of European countries-allies of the United States must maintain the necessary to counter the Eastern block military and industrial potential. Simultaneously, it was necessary to solve problems of reproduction of financial institutions in Europe and their interaction with US financial institutions.


Until this year, almost all Western European countries were able to achieve the free convertibility of national currencies.


The Japanese yen becomes freely convertible.

At the same time owing to growing inflation in the United States can no longer hold the previously announced price of gold to $35 per Troy ounce. The following changes in the tax and economic legislation of the States became the reason for the emergence of a completely new market mechanism - foreign exchange market "Europe - USA".


The devaluation of the English currency, which happened this year, completely destroyed the confidence in the sustainability of the Bretton woods system.


The sharp decline In U.S. interest rates causes a collapse of the dollar. This was caused by a massive outflow of capital from there to Europe, where the level of interest rates on loans were much more attractive to investors. 


Holland and Germany are forced to go courses of their national currencies.

Large negative balance of the balance of payments and other crisis phenomena in the economy forced the then US President Nixon "temporarily" disable the unconditional convertibility of USD to gold.


In the US, abolished certain taxes, minimized the program of voluntary restrictions on loans. The epoch of the Bretton woods system.


This year actually and appears the Forex market in its modern sense. The capital of Jamaica Kingston hosted an international conference where the representatives of banks, regulators and financial bodies of all the major countries of the Western world have together established the principles of functioning of the new Global Monetary System. They abandoned the principle of using gold as a means of payment in international payments.

To ensure efficiency of this system was created a supranational organization to regulate relations in the new currency market. The role of means of payment is entrusted to the national currencies of the participating countries. Direct implementation of foreign exchange transactions was assigned to the largest commercial banks in the States that have acceded to the Treaty. 


In Europe there is a private European monetary system, abbreviated as EMU.

The base currency of the EMU, chosen by the German brand.


Created earlier "conventional" monetary unit, ECU, which was until now only for mutual settlements between the countries participating in the EMU, becomes not only a means of payment, but also appears in classic "money".


In Maastricht (the Netherlands) heads of States participating in the EMU, signed a new version of the Treaty on European Union. This Treaty laid the basis for the functioning of the European common market, the European Central Bank (ECB), the new single European currency. 


The heads of the countries-locomotives of the EEC agreed to start using since 1999 the single European currency in those countries that will be able to meet established jointly by the severe restrictions on the size of the budget deficit, public debt, interest rates, inflation. 


The introduction of the new European currency - the Euro-which replaced the ECU. Immediately in eleven European countries fixed the exchange rates of national currencies against the Euro, which became the only full-fledged means of payment on the territory of these States. The European Central Bank started to perform functions of the Bank-regulator of the European monetary Union.

Category: Forex | Added by: (29.10.2017)
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