Currencies were initially in the form of pieces of metal from silver or gold and then evolved and became Banknotes and became worthless and a certain amount of gold called the gold standard since 1876 until 1933 was the currency value and a certain amount of gold, it is possible to replace the currency equivalent worth of gold at any time with the First World War the central bank cancelled the possibility of replacing the coins to the value of Golden therefore banks printing currency and traded between individuals without any valuable than gold , which resulted in inflation and the deterioration of economic countries started to import gold in order to be value for currency but with the presence of world war suspended the importation of gold and the deterioration of the global economy and had to be a quick economic solution to save the world from falling into the great economic crises could occur.
Install Exchange Rates and the Bretton Woods Agreement:
The Bretton Woods Agreement seeks to resolve the economic crisis large that have occurred so in the 1944 conference was held in the state of New Hampshire in the United States was agreed to be installed Exchange Rates against the U.S. dollar and peg the dollar versus what is equal to $ 35 an ounce andgold and central banks intervene and seek to install those prices and the value of the change that occurs no more than 1% of their value.
Float the currency and prices, which resulted in the forex market:
In 1970 passed the U.S. economic conditions difficult, therefore, President Nixon canceled the Bretton Woods Agreement and uninstall currency rates and prevent the conversion of dollars into gold in 1973 became the currency exchange rates are variable and are not fixed and that based on the size of the supply and demand for currencies, which will be called Forex thenit featured companies and institutional investors to take advantage of the changes that occur as a result of price changes always have became huge amounts of currency in order that investors can adult incomes in the forex trading market and provide them with the opportunity to work on price changes that occur in the forex market.
Euro official currency of the European countries:
In 2002 appeared official currency of the European countries, the euro in order to become official currency of these countries represented in Forex which Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain became the euro currency in second place after the U.S. Dollar traded.
The development of means of communication and the emergence of brokerage firms:
With the development of means of communication and the emergence of the Internet has become a brokerage firms allow action in the currency market through the Internet and allowed entry small investors in the field of forex after it was dedicated to large institutions, banks and big investors and became an open field for investors in most countries of the world in order to enable individuals to engage in forex marketand provide them with the opportunity and the exploitation of fluctuating prices to get great profit opportunities through supply and demand for different currency pairs in the Forex market.
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