The international foreign exchange market has deep
centuries-old roots. It dates back to thousands years before Christ, when the
first metal coins were minted in Egypt. Currency exchange operations in their
present conception started developing in middle ages. It was connected with the
development of international trade and navigation.
Italian moneychangers that
earned money by exchanging currencies of different states are considered the
first speculators in foreign currency.
As intergovernmental relations developed, the market of
currency exchange operations altered and assumed a more and more clear shape.
The most significant changes in the development of the foreign exchange market
were done in the 20th century.
The FOREX market started gaining its modern
characteristics in the 1970s, when the system of fixed rates of one currency,
as related to another currency, was eliminated.
After the restrictions for currency fluctuations were
removed, a new type of business appeared that was based on getting profit in
the conditions of the free system of exchange rates. The change in the rate is
conditioned by various market conditions and is regulated only by demand and
supply.
0 comments :
Post a Comment