During the late 19"' century, most of major economic countries had pegged an amount of money to an ounce of gold. Over time, the difference in cost of an ounce of gold between two currencies became the market rate for those two currencies. This represented the first official means of currency exchange in history. The gold standard finally broke down during the beginning of World War 1. Due into the political tension with Germany, the major European powers felt a need to complete large military projects, so they started printing more money to help pay for these projects. The financial burden of these projects was so substantial that there wasn't enough gold at the opportunity to exchange for all the currency the governments were printing off.
This is the first part of a series of articles we are going to publish about crypto and forex trading. With this we'll help all our followers get a deeper understanding about the functionalities and of the crypto and forex trading. We will be releasing a part by part a comprehensive guide of trading for everyone to follow. This way newcomers an veterans of the trading world will be able to comprehend the the secret of the trading world. Hope you enjoy this guide and don´t hesitate in leaving your opinions as well as queries on the bottom of the page. Trading guide part 1: Forex HistoryStay tuned for the release of part 2 very soon! It is important to learn some of those historical events who relate to monies and the exchange of them. We will go through the global monetary system and the way it became what it is nowadays. So, it basically started with the Gold Standard System. The invention of the gold standard monetary system in 1875 is one of the most important events in the history of the currency market. Before the gold standard system was made, countries were commonly using gold and silver as a method of worldwide payments. The major issue around this was the fact that the price of these materials depends on supply and demand. For example, when a new gold mine was discovered the prices usually went down. The basic idea behind the gold standard was that authorities guaranteed the conversion of currency into a particular quantity of gold. Ln other words, a currency had backup from gold. Clearly, governments needed a rather substantial gold reserve in order to satisfy up with the demand for currency exchanges. Choose the best broker! Have a look at our top 5 agent reviews: Best Brokers to invest Prior to the end of World War two, the allied states felt the need to set up a monetary system in order to fill the void that was left when the gold standard system was abandoned. In July 1944, more than 700 representatives from the Allies met in Bretton Woods, New Hampshire, to deliberate over what could be known as the Bretton Woods System. Don´t fall for the pirates! Check out our broker scam list:
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