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Foreign exchange market development history

cashback forex calculator Onl cashbackforexcalculatorOnlinee rate cashback forex originated from the trade between countries, from the ancient barter, the development of todays currency to buy the goods cashbackforexpipcalculator services needed, which has undergone a great evolution and a long time reform, to constitute todays cashbackforexprofitcalculator exchange market system as long as the countries continue to pursue the balance of payments, maintain monetary policy autonomy, to maintain free trade and capital in and out, foreign exchange rates will continue to After the First World War, the world economy accelerated growth, gold production rate failed to match the demand for money supply, in addition, during the outbreak of the war, many countries stopped exchanging gold, so that the gold standard system exists in name, although after the countries are trying to restore the system, but because of the exchange price of national currencies and gold is difficult to return to the old view, the exchange rate appeared extremely volatile situation. In addition, in 1929 the western countries economic market crisis, the impact spread to the United States and the world, and finally triggered worldwide economic chaos and turmoil major economic countries in order to solve the crisis, have to devalue their currencies, while the import tariffs to increase, and more prohibit the exchange of gold to reduce the number of outflows at this time, along about a hundred years of the gold standard system has been seriously damaged in the gold standard system and the gold exchange standard system after the destruction, countries In order to protect their own interests, a series of trade protection policies and foreign exchange controls, the gold peg-based system into a paper currency system that can not be exchanged for gold Finally, in 1931, the United Kingdom first announced the abandonment of the system, followed by other countries, the gold standard system completely collapsed between the competition and contradictions between countries, not only affect the development of the economy, but also destroyed the trust between countries Therefore, some countries in This trend gradually developed into three major currency zones, namely, the U.S. dollar zone, the British pound zone and the franc zone. The dollar zone, the currency exchange rate of each member of the zone is fixed in dollars, all economic and trade transactions in the zone are settled in dollars, and all reserves in the zone, including foreign exchange and gold are concentrated in the United States during this period of foreign exchange activities are mainly concentrated between the dollar, pound and franc, has been maintained until about 1944 dollar standard system 1943 after the Second World War, the world political and economic situation has undergone a major transformation, the need to re-establish a new After two world wars, the United States surpassed the United Kingdom in economic and political status and became a global superpower and leader, and 44 countries, including the United States, Britain, the Soviet Union and France, held the United Nations Monetary and Financial Conference at Bretton Woods, New Hampshire, in July 1944, with the aim of establishing a new financial system. The conference also established a new monetary system, elevating the U.S. dollar to the status of an international currency and becoming an international reserve center. In addition to gold, the other major option Bretton Woods system agreement is a combination of the gold standard system and the use of fixed exchange rates, but also can make appropriate adjustments to the new system provides that countries to maintain the price of 1 ounce of gold to $ 35, the exchange rate of each country can only fluctuate within 1%, unless a country has a balance of payments imbalance, can go beyond the scope of this provision, but must be allowed by the International Monetary Fund organization The main purpose of the International Monetary Fund is to eliminate obstacles to trade, promote international monetary cooperation, maintain the stability of national exchange rates and supervision of the foreign exchange market International Monetary Fund has a reserve fund to provide relief to countries with balance of payments problems International Bank for Reconstruction, that is, the work of the World Bank, mainly to provide short-term and long-term loan financing United States during the World War has accumulated a large amount of foreign exchange and gold Gold can only be pegged to the dollar, other national currencies are pegged to the dollar, and the exchange rate is set with the dollar as the core, the main trade settlement is also settled in dollars, which is the dollar-centered Bretton Woods system Bretton Woods system has solved the shortcomings of various systems in the past. For example, international reserve requirements, balance of payments, international trade, exchange rate risk, etc. This system through international conferences to establish a new system, from about thirty years after the two World Wars, it has a great impact on the promotion of international trade and world economic development, but with the rapid economic development, but some new problems arise floating exchange rate system in the Bretton Woods system in the phase of the country to country Trade barriers friction reduced, so that the world economy boom, Europe and Asias economy to recover from the war damage until 1960, the United States advanced industrial power status began to be challenged by West Germany and Japan With the increasing demand and amount of world trade, the speed of gold production and far behind the rapid expansion of international trade, the dollar as the main currency must maintain the stability of the system because it can not arbitrarily increase Money supply to meet the needs of international trade, and so produce currency liquidity, finally triggered the dollar crisis at the time the world began to lose confidence in the dollar, the entire exchange rate system also shaken and completely collapse of the U.S. balance of payments deficit appeared long-term rapid expansion, serious inflation, the United States of Americas position as a world economic leader began to shake, and the official price of the dollar against gold also began to be questioned, these are The first devaluation of the dollar occurred in August 1971, when U.S. President Richard Nixon announced a new economic policy that adjusted the official price mechanism of the dollar and gold, but the new policy still failed to improve the trade deficit for the United States, and failed to solve the chaos of the international market. Countermeasures, the original fixed exchange rate system to the exchange rate free floating International Monetary Fund set up a special study and reform of the exchange rate system of the Interim Committee, and in 1976 in Jamaica through the floating exchange rate system feasibility of the agreement, with the end of the Bretton Woods system, the world foreign exchange system into a new course of development floating exchange rate system refers to the foreign exchange rate should be decided by the market of supply and demand The new system and the previous system is different, is to give up the national currency and gold between the fixed proportion of the relationship, this exchange rate system is mainly relying on national credit as a guarantee for the central bank, but also to give their own monetary policy, and the use of intervention in the market power to maintain the countrys monetary policy, strengthen the countries in the trade The ability to collect and spend, improve the rapid development of international trade caused by the problem, further improve the system of the world foreign exchange market foreign exchange market development reasons foreign exchange market is the main service, is for the purchase and sale of foreign exchange to set up trading places foreign exchange market is an invisible market, 24 hours a day operation it is some foreign exchange financial institutions, enterprises and investors, etc. through the telephone, electronic communication equipment and electronic trading system, etc. Nowadays the world is globally integrated, the relationship between countries is getting closer and closer, the economy is integrated with each other, and when a countrys economy is changing, it will also affect the stability of other countries. The foreign exchange market is now the worlds most important financial trading market and the main reasons for the development of the foreign exchange market include: exchange rate free float exchange rate free float generation, so that the benefits of the foreign exchange market can be developed, the original trade settlement function, into a forecast of future currency price fluctuations, and from which to make speculative buying and selling operations and risk avoidance activities due to the exchange rate Volatility are significantly broadened, bringing unlimited opportunities for investors, more and more investors to participate in foreign exchange trading abolition of foreign exchange controls financial system liberalization is mainly relaxed the free transfer of funds, free floating interest rates and relaxation of financial business norms and so on and the United Kingdom in 1979 after the abolition of foreign exchange controls, the government reformed the financial business, plus located in a superior time zone, become the largest foreign exchange market trading volume Because the United States did not set up controls on the financial industry, foreign exchange participants, attracted a large number of funds, and became the worlds major foreign exchange market Japan from the defeat of the war, and actively enhance the status of the yen in the international, in the 1980s also relaxed the foreign exchange control, promote the development of Japans financial industry, with the rapid economic takeoff, Tokyo foreign exchange market once became the second largest foreign exchange market each major financial markets to relax the financial business Liberalization, greatly promoted the development of the global foreign exchange market simplify the transaction process seventies computer began to popularize, the operation of the financial market has also been transformed, but the technology is still in the primary stage into the late eighties, computer technology breakthroughs across the board, first of all, the dollar settlement processing time is shortened, from two days to the same day, followed by the establishment of a global foreign exchange trading network, the terminals around the world connected to It only takes a few seconds to allocate tens of millions of dollars until the late nineties, the Internet is very popular, so that investors involved in the foreign exchange market procedures to simplify a lot, saving a lot of time costs, the revolution in new technology also laid the foundation for the development of the foreign exchange market participants many foreign exchange market from the mid-seventies after the beginning of the end of the fixed exchange rate system, the main function of foreign exchange transactions, from the international trade Payment needs, gradually changed to speculative buying and selling operations and risk-averse activities because of the free floating exchange rate, so that the foreign exchange market profit opportunities to improve, attracting a large number of investors involved in the foreign exchange markets main participants include: central banks central banks mainly to maintain the exchange rate and monetary policy stability, so it is the main purpose of foreign exchange transactions is not to obtain profits foreign exchange bank foreign exchange banks business scope is quite Extensive, involved in foreign exchange operations for many motives, mainly including: speculative buying and selling, risk aversion, etc., but ultimately are profit-oriented financial institutions financial institutions including foreign exchange brokers, trust and investment companies, insurance companies, etc., the mode of trading short-term speculation as well as long-term investment, its main purpose is also to earn profits multinational enterprises, importers and exporters, etc. They must be involved in the business of foreign exchange trading, mainly The general investors are expected to participate in foreign exchange transactions because of future exchange rate changes, and this profit information popularization of the rapid development of the Internet, to improve the development of the foreign exchange market opportunities, whether in the transaction mode or access to information, have experienced epoch-making changes in the foreign exchange market by the original telephone to complete the transaction procedures with the bank, to the Internet connection only through the Internet to complete the transaction procedures. Evolution to only need to connect to the trading platform through the Internet, you can directly carry out foreign exchange transactions, no longer need to go through the complicated confirmation process forex trading on the other hand requires news and information collection in a timely manner, the Internet in this regard completely solved the problem, investors through the trading system can get instant quotes, and access to professional commentary and chart analysis

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