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  1. #1
    anil595 is offline Senior Member
    Join Date
    Aug 2008

    Default History of Forex

    Before the Second World War, there is no international organization to coordinate the different monetary systems. Thus, there was no listing on a parity as at present.

    In 1944, with the Bretton Woods agreements, 44 countries of the United Nations founded the IMF and IBRD to ensure "stability" in the international monetary system. The currencies of these countries should be defined using a fixed set on the USD. The dollar itself is stalled on a fixed gold parity (35 dollars an ounce).

    Parities are fixed, then it is impossible to speculate on currencies.

    In 1971, Nixon suspended the dollar's convertibility into gold, all currencies are floating.

    Today, Forex is an interbank market (OTC) open 24/24 with an average of 3 000 billion dollars per day (in 2004). Parities most processed on the Forex are the eur / usd (about 28% of total), the USD / JPY (approximately 17% of total), the gbp / usd (about 14% of total).

    The foreign exchange market, liquidity is also the largest financial market, and low volatility (contrary to what many think, in fact the eur / usd range of plus or minus 1% per day).
    Last edited by anil595; 04-07-2009 at 02:13 AM.

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