Min menu


أحدث المقالات

How did forex start?

(How did forex start?) The origin of the Forex trade has been traced back to its history years ago. Different currencies and the need to exchange them have existed since the days of the Babylonians. He calculated that they were the first to use paper notebooks. Speculations were barely speaking. These days the value of goods was expressed in the form of other goods. The clear limits of this system encouraged more acceptable means of exchange. It was necessary to establish a common rule for calculating the value. In some economies, things such as teeth, feathers and even stones were used at some times, but later on, the use of minerals, especially gold and silver, was used to dig a prominent place as an acceptable means of payment and also as a storehouse of value that could be trusted. Trade between the peoples of Africa, Asia and others was done through this system. Money was initially manufactured from the preferred metal in stable political systems, introducing the paper form of government bonds also gained acceptance in the Middle Ages. This type of bond or paper currency was more successful by imposing it through force than persuasion until it became the basis of the modern currency system in today's world. Before the First World War, most central banks supported their currencies by making them convertible into gold. However, the standard gold swap system had weaknesses during the cycles of contraction and boom. When an economy recovers, it begins to increase the pace of its imports from abroad so that its gold reserves are reduced to support its currency. As a result, money supply dwindles as interest rates rise and economic activity slows down to recession. in the end. \. The Great Depression and the abolition of the gold standard system in 1931 created a period of calm in the activity of the Forex market. From 1931 until 1973 The European Economic Community introduced a new system of fixed exchange rates in 1979 known as the European Monetary System. Europe's pursuit of currency stability continued with the signing of the Maastricht Treaty of 1991, which not only aimed at stabilizing exchange rates but also replaced many of them in euros in 2002. London was and remains the main center of the offshore market. In 1980, it became the main center of the Euro-Dollar market when British banks began lending in US dollars as an alternative to the Pound. In order to maintain its leadership position among global financial centers, the non-persistence of the fixed exchange rate regime gained new significance with the events in Southeast Asia At the end of 1997, some of the currencies were devalued against the US dollar, while others were left unchanged, especially in South America, which was also in dire straits at this time. While businesses have to face a more volatile currency environment during these years, investors and financial institutions have found new ground to work on. The Forex market initially operated under the control of central banks and government institutions but later absorbed various other financial institutions. At the moment, it also includes dot com companies as well as those operating on the Internet. The size of the Forex market is currently dwarfed by any other market for investment. The foreign exchange market is the largest financial market in the world where it trades approximately $ 1.9 trillion a day. It is estimated that more than $ 1200 billion a day is traded daily and thus can easily be said that the Forex market is a very lucrative opportunity for discerning investors