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Origin and exchange market development
| Trade in currency has centuries-old history which ascends by times of the Ancient East, and in the Middle Ages when the arisen international banks began to apply the exchange means of payment valid for a presentation to the third parties that promoted increase of flexibility and growth of number of concluded foreign exchange transactions, definitive forming of the exchange market has begun. The modern market of currencies, for которного are characteristic periods of growth periodically replacing each other волатильности (frequency and scope of change) the prices and their relative stability, has developed in the twentieth century. To the middle of 30th years London was the leading center of currency trade, and the British pound was currency for calculations and creation of currency holdings. As at that time currency traded by means of telex or on telegraph, the British pound had the standard name "cable” (telegram). After the Second World War when the economy of Great Britain has suffered the big loss, and the United States were unique of industrially developed countries, not suffered economically from war, US dollar, according to the Bretton-Vudssky agreement (1944) between the USA, Great Britain and France became reserve currency for all capitalist countries with a rigid artificial binding of their currencies to the American dollar (creation of currency corridors which should provide central banks of the corresponding countries by interventions or currency buying up). In turn, the US dollar has been adhered to cost of gold from calculation of 35 dollars for ounce. The same agreement had been formed the International currency fund (IMF) playing a crucial role in rendering of credit support developing and a former communist block, conducting economic reforms. For accomplishment of these purposes of IMF uses such tools as the reserve tranches allowing the countries to use resources from their own member quotas at approach of terms of payments, credit lines and type agreements stand-by. Credit lines and stand-by - agreements are standard forms of loans of IMF, unlike such as compensatory financial support which is intended for expansion of the financial help to the countries with the time problems caused by reduction of export volume; the replenishment of reserve stocks intended for the help in accumulating of primary commodity resources with a view of provision of price stability on special groups of the goods, and the expanded support for rendering assistance to the countries experiencing financial difficulties which on the size or duration surpasses volume of other kinds of the help. The major mark in the history of financial markets HH of century entering in the late seventies гг was free floating rates of the currencies, led to Forex formation in its modern understanding. It means that the given currency any interested person can trade, its price is determined as function of current supply and demand in the market, and the special positions of intervention demanding the constant control, no. After floating rate entering there was an essential growth of trade volume on Forex. If in 1977 г day turnover constituted on it 5 billion US dollars by 1987 he has grown to 600 billion, and in September, 1992 has reached a point in 1 trillion and was stabilized by 2000 at level about one and a half trillions dollars. This considerable increase is caused by the major factors considered more low. Crucial role such factors as increased волатильность the currency exchange rates, the amplified mutual influence of economy of the various countries on size of discount rates of central banks on which the rate of the corresponding currency, the become aggravated competition on goods markets and, equally, consolidation of corporations of the different countries, technical revolution in sphere of realization of currency transactions essentially depends have thus played. Last was expressed in creation automated дилинговых systems and transition to trade in currency on the Internet. Dilingovye systems banks of the different countries in a uniform network, and special согласующие systems became electronic brokers. Development of computer technologies, the software and telecommunications, and also the increased experience have led to increase of a skill level of traders, their capabilities to get profit and to reduce risk at carrying out of operations. Owing to it growth of trading qualification also has affected trade volume growth. Source: http://forex-ea.ru | |
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