Historical Origins of Forex Trading: An Academic Look
Forex, short for foreign exchange, is a global market for exchanging one currency for another. It is the largest and most liquid financial market in the world, with an average daily trading volume of over $5 trillion. The history of forex can be traced back thousands of years, to the time when different nations began to adopt distinct currencies. Ancient people used coins and trading bills as a form of money. The earliest form of modern forex was the Bretton Woods system introduced in 1944, which set the stage for the global economy of today. Through a series of agreements, the United States Dollar became the de facto reserve currency for the global economy. Since then, forex markets have grown exponentially and established themselves as the largest global markets.
Read More