The history of the forex market

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By aaron

The early roots of the forex market go back to the period after WWII. To help deal with the chaos in the world, governments wanted a system to help stabilize the economy.

The first system was called the Bretton Woods System which set the value of the US dollar relative to gold. Then other currencies could be set relative to the US dollar.

In 1971 the Bretton Woods System was abolished because it had limitations that prevented economic growth. Currency exchange was done with a free market where valuations were based on supply and demand.

It was a bit rough at first, but in the early 1990's the Internet made the system much easier. This is also when retail forex brokers started to appear.

#forex #investing

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