many traders may never know the history of forex, even though they are used to playing in the trading market. It is not surprising that this can happen, because many people often forget that history has a big influence on the future. Well, talking about forex that you might be playing right now, did you know that forex itself has a history since 1990. This investment business is actually not a common game that anyone can do now, as long as they have the tools and budget. This business was once a business of the upper class or owned by the government and many institutions and companies that played forex. They do this forex trading to complete various purposes such as paying debts, trading needs and many others. Some examples of large companies that have traded forex such as Apple and Toyota.
At that time, forex really became a pillar of every company that had debt or wanted to pay to other companies, so it wasn’t just anyone who could open a forex business like it is today. After the development of technology experienced rapid changes, finally the forex market began to be opened gradually, so that in the 1995’s, every individual had started to engage in this business. It’s just that, not everyone in the lower middle class can do it, it’s limited because forex can only be run using a stable internet connection and adequate electronic devices at that time. The people who played forex in the 90s were still dominated by the upper class or the nobility or the rich, while the lower middle class did not know anything about forex until now. Brokers in the past still used simple applications by trading retail to each individual. Meanwhile, nowadays, even everyone can play forex easily, whether it’s motorcycle taxi drivers, housewives and everyone who already has a laptop, bank account and smartphone.
The history of Forex begins with Currency Exchange
Considering that the potential for exchange of currencies from different countries is always profitable, this is attempted as a substitute for the barter system for goods that was once so popular or very familiar to people around the world. Then, after the era of the exchange of goods or the barter system had begun to disappear, there was a more simple and practical exchange rate using currency. Using currency as a legal tender to this day, it used to take years for the purpose of changing everyone’s habit of exchanging goods or bartering using working currency. Over time, problems with the currency exchange system began to emerge, there are several currencies that are the most powerful so that they suppress the prices of other currencies, for example, the current exchange rate of USD to IDR, 1 USD – IDR 15,600, this proves that the currency game is really playing. can be considered detrimental but on the other hand it is made into a lucrative business. It is not surprising that until this moment, forex games have always been loved by those who understand currency movements.
Because there are advantages there that need to be pursued. Well, let’s continue again. Every region that at that time implemented a barter system, gradually began to decrease and was eventually replaced by currency and it was not as easy as we imagine to get used to using currency as an exchange rate. Finally, many problems arise related to the barter system policy which is replaced by currency exchange, inflation occurs everywhere which causes the price of goods to increase significantly compared to the value of money itself. Even in Indonesia, inflation occurs regularly every 1 year around 3%.
History of Modern Forex Trading What You Need to Know
The history of forex trading started from the time of war two to II, at that time there were many businessmen and businessmen who exchanged money which affected the crisis period due to war. There was a lot of chaos and currency depreciation, which clearly had a negative impact on every influential country. Of course the allies will feel the need for a system that helps the global economy, so the “Bretton Woods System” was formed which has the goal of making all these dreams come true. At least, the ultimate dream is global prosperity.
While in this system itself was born in 1944 in the United States which was the first to regulate monetary between countries. America is the most important part of this system which holds at least two-thirds of the world’s gold reserves. Well, finally this system was renewed with a new regulation in which all countries involved in this system had to relate the value of gold and the US dollar as a country that at that time had full power and influence on all countries in the world. Not surprisingly, if America won World War II and became a superpower until this moment. Next after that, in 1971, America decided to currency relations with gold which ended the Bretton woods system which resulted in the US dollar being the reserve currency for all countries in the world. From there was born a new system known as the floating exchange rate (Floating Exchange Rate System). At that time, transactions or currency exchanges were only carried out by banks, while other parties, such as the government and companies, had to make contact with the relevant bank first to record the price of currency that could be bought and sold. So, from here created a fairly drastic currency exchange.
The Era of Online Forex Trading
Next, economic developments really had a strong global influence until the 2000s, so a new history of forex trading that can be done online is present in the community and is still dominated by big banks and companies that deserve these regulations. As you should know, at that time banking intermediary transactions were no longer through mobile phones which were often carried out by companies in the past, but a trading platform with features that were not as complete as they are today. Currency exchange rates are increasingly sophisticated because they are presented in real time and are able to become an attraction for people who want to try them.
Forex trading is not new in foreign currency exchange, because it has existed for a very long time and emerged from the development of the superpowers after the crisis of World War II. Now, anyone can play forex trading according to their needs. Well, until here first information from us about the complete history of forex trading. Thank you for visiting, I hope this content is useful and useful for all of you.