Chương 7 HISTORY OF FOREX
The Mesopotamian tribes introduced the barter system, which dates back to 6000 BC, as the first form of transaction. In the barter system, items are traded from one person to another.
Then, as the system evolved, commodities like salt and spices started to be used often as a medium of exchange. The barter system was eventually abandoned as the economy grew due to its numerous flaws and was eventually replaced by the use of money to conduct buying and selling activities.
The Bretton Woods System, which came into being after the close of World War II, marked the first significant adjustment to the foreign exchange market. At the Bretton Woods, New Hampshire, United Nations Monetary and Financial Conference, the US, UK, and France gathered to discuss creating a new international economic system. Because the US was the only nation at the time that was not at war, that is why it was chosen as the location.
The majority of the major European nations were in shambles at the same time that World War II had transformed the US dollar from a failed currency (following the stock market crash of 1929) to a standard currency.
Following the Bretton Woods Agreement in 1971, the bank will handle the majority of currency purchases and sales, and other parties like the government and trade firms will need to work via the bank as an intermediary.
They must phone the bank, which will then record the cost of any purchases or sales of cash. From this point on, the interbank market is developed as a decentralised network (over-the-counter) where money will be exchanged and its value would fluctuate.
The worldwide economic growth that took place in the 1980s and 1990s has brought about new changes in the forex trading industry, allowing individuals to compete in a market that was previously only dominated by major banks and multinational corporations.
A trading platform has also been developed so that anyone can view the "price" (current currency exchange rate), buy and sell currencies in real-time, and conduct transactions through banking intermediaries online rather than over the phone.
Technology advancements have had a significant impact on the history of forex trading since they have fueled growth in the forex market, which is now the largest financial market in the world.
