About Forex Trading (NEW)

Initially, the value of goods was expressed in terms of other goods, ie an economy based on barter between market participants. The obvious limitations of a system encouraged establishing more generally accepted means of exchange at a stage early enough in history to define a common benchmark. In different economies, from teeth to feathers to pretty stones has served this purpose, but soon metals, including gold and silver, were established as a means of payment accepted and reliable storage of value. Originally, coins were minted only the preferred metal, but in stable political regimes, the introduction of a paper form of governmental IOUs (I owe you) gained acceptance during the Middle Ages. These notes, often more successfully introduced by the force of persuasion were the basis of modern currencies.
Before the First World War, most central banks supported their currencies with convertibility to gold. While paper money can still be exchanged for gold, in reality this does not happen often, promoting the notion of disaster that do not necessarily need full coverage in the central reservation of government. Sometimes the source of currency paper balloon without gold cover led to devastating inflation and resulting political instability. To protect local national interests, exchange controls were increasingly introduced to prevent market forces from punishing monetary irresponsibility.
In the latter part of World War II was Bretton Woods agreement on the initiative of the United States in July 1944. Bretton Woods Conference rejected the proposal of John Maynard Keynes to a new global reserve currency in favor of a system built on the U.S. dollar. Other international institutions like the IMF, the World Bank and GATT (General Agreement on Tariffs and Trade) was established in the same period as the new conquerors of 2 World in search of a way to avoid destabilizing monetary crises leading to war. Bretton Woods resulted in a system of fixed exchange rates that partly reinstated the gold standard, fixing the dollar at USD35/oz and fixing the other main currencies to the dollar - and was intended to be permanent.
The Bretton Woods system was under increasing pressure as national economies have taken different directions in the sixties. A number of adjustments to keep the system alive for a long time but eventually Bretton Woods collapsed in the early years after President Nixon suspended gold convertibility in August 1971. The dollar was no longer appropriate that the international community to the single currency when it was under a strong pressure on the U.S. budget and trade deficits increasing. The following decades saw foreign exchange for developing the world largest market by far. Restrictions on capital flows have been eliminated in most countries, leaving the market forces free to adjust the exchange rate on the basis of their perceived values.
But the idea of fixed exchange rate is not dead. The EEC (European Economic Community) has introduced a new system of fixed exchange rate in 1979, the European Monetary System. This attempt to fix exchange rates met with near extinction in 1992-93, when economic pressures forced devaluations accumulated a series of weak European currencies. However, the quest for currency stability has continued in Europe with the new attempt to determine not only the currencies but actually replace many of them with the euro in 2001.