Forex History: Development and Prospects
Forex History is a history of the development of international currency markets, beginning with the visionary steps following the collapse of the Bretton Woods Agreement in 1971. This agreement provided fixed exchange rates for currencies against the US dollar and gold, but its dissolution was a key moment after which currency markets became freer and more dependent on market forces.
The collapse of the agreement
The dissolution of the Bretton Woods agreement facilitated the emergence of new financial instruments and the liberalization of currency transactions. With the advent of information technology in the following decades, trading in the foreign exchange market became more accessible and active. This led to an impressive growth in trading volume in the Forex market, which became one of the most liquid and largest financial markets in the world.
Emergence of markets
The emergence of the Euro markets in the 1950s was another important milestone in the history of Forex. The Euro markets gave companies and investors the ability to place their assets in a variety of currencies, increasing liquidity and trading diversity. This was particularly attractive to investors during periods when the Euro markets offered higher yields and were less regulated.
All these changes in the global financial system contributed to the accelerated development of the Forex market and its transformation into one of the leading financial markets with a gigantic volume of transactions spanning America, Europe and Asia. Technological innovations and liberalization of financial transactions have accelerated cross-border money flows and made Forex a key component of today's global economy.
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