The history of forex trading started during the Babylonians’ time. This system was designed for currencies and exchanges. At the start, goods were traded for another tangible item. When the metal age began, gold and silver became the transaction tools. This idea became popular during that age.
The History of Forex Trading
Coin creation and political regimes started then. When gold became an important trading tool, its use became restricted, diminishing money’s value.
There was a great panic then because people wanted 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.