The history of forex trading started during the time of the Babylonians. This system was designed for currencies and exchanges. At the start, the goods are being traded for another tangible item. When the metal age began, gold and silver became the transaction tool. This idea became popular during that age.
The History of Forex Trading
The creation of coins started then, as well as the political regimes. When gold became an important trading tool, its use became restricted; therefore, the result was that money’s value diminished.
A great panic happened then because people would like to exchange the value of their money for gold. In 1931, the gold standard was removed, and the FOREX market was born, although people used to have little or no notion about it.
Foreign exchange was introduced so citizens would have more monetary stableness and reliability. Through the initiative of the USA in July 1944, the new world’s currency was initiated with the use of the US Dollar. IMF, World Bank, and GATT were formed and agreed upon during those times at Bretton Woods. The agreement comprised the Gold Standard, which will equal $35.00 per ounce. Other currencies were also fixed with this standard. The reason for this is to avoid destabilizing the monetary crisis.