Forex history: Timeline of Forex
In recent years, as commercial companies have been faced with a currency environment that has been more volatile, financial institutions and investors have found a new area to focus on. The foreign exchange markets have become much larger than any other market for investment that exists. Every day, it is estimated that over 1,200 billion USD is traded. A total that exceeds the world wide total of the bond market and the stock market combined.
Timeline of Foreign Exchange:
- 1944 - Bretton Woods Accord is established after World War II to help stabilize the global economy.
- 1971 - Smithsonian Agreement is established which provided greater fluctuation bands for currencies.
- 1972 - In an effort to move away from the dependency the European community had acquired on the U.S. dollar, the European Joint Float was established.
- 1973 - The official switch to a free floating currency system was made after both the European Joint Float and the Smithsonian Agreement failed.
- 1978 - In a joint effort to help other countries gain independence from the U.S. dollar, the European Monetary System was introduced to other countries.
- 1978 - The IMF officially mandated the free-floating currency system.
- 1993 - A worldwide free-floating currency system is established when the European Monetary System failed.