Forex History   Trading Account

In 1944, the Bretton Woods Accord was signed, allowing currencies to fluctuate within a range of ±1% from the currency's par exchange rate. In Japan, the Foreign Exchange Bank Law was introduced in 1954. As a result, the Bank of Tokyo became the center of foreign exchange by September 1954. Between 1954 and 1959, Japanese law was changed to allow foreign exchange dealings in many more Western currencies. U.S. President, Richard Nixon is credited with ending the Bretton Woods Accord and fixed rates of exchange, eventually resulting in a free-floating currency system. After the Accord ended in 1971, the Smithsonian Agreement allowed rates to fluctuate by up to ±2%. In 1961–62, the volume of foreign operations by the U.S. Federal Reserve was relatively low. Those involved in controlling exchange rates found the boundaries of the Agreement were not realistic and so ceased this, in March 1973, when sometime afterward none of the major currencies were maintained with a capacity for conversion to gold, organizations relied instead on reserves of currency. From 1970 to 1973, the volume of trading in the market increased three-fold. At some time (according to Gandolfo during February–March 1973) some of the markets were "split", and a two- tier currency market, was subsequently introduced, with dual currency rates. This was abolished in March 1974. Reuters introduced computer monitors during June 1973, replacing the telephones and telex used previously for trading quotes.

After World War II

FROM Wikipedia

Due to the ultimate ineffectiveness of the Bretton Woods Accord and the European Joint Float, the forex markets were forced to close, sometime during 1972 and March 1973.The very largest purchase of US dollars in the history of 1976 was when the West German government achieved an almost 3 billion dollar acquisition (a figure given as 2.75 billion in total by The Statesman: Volume 18 1974), this event indicated the impossibility of the balancing of exchange stabilities by the measures of control used at the time and the monetary system and the foreign exchange markets in "West" Germany and other countries within Europe closed for two weeks (during February and, or, March 1973. Giersch, Paqué, & Schmieding state closed after purchase of "7.5 million Dmarks" Brawley states "... Exchange markets had to be closed. When they re- opened ... March 1 " that is a large purchase occurred after the close)

Markets close

FROM Wikipedia

In developed nations, the state control of the foreign exchange trading ended in 1973 when complete floating and relatively free market conditions of modern times began. Other sources claim that the first time a currency pair was traded by U.S. retail customers was during 1982, with additional currency pairs becoming available by the next year. On 1 January 1981, as part of changes beginning during 1978, the People's Bank of China allowed certain domestic "enterprises" to participate in foreign exchange trading. Sometime during 1981, the South Korean government ended Forex controls and allowed free trade to occur for the first time. During 1988, the country's government accepted the IMF quota for international trade. Intervention by European banks (especially the Bundesbank) influenced the Forex market on 27 February 1985. The greatest proportion of all trades worldwide during 1987 were within the United Kingdom (slightly over one quarter). The United States had the second amount of places involved in trading. During 1991, Iran changed international agreements with some countries from oil-barter to foreign exchange.

After 1973

FROM Wikipedia

1. International Center for Monetary and Banking Studies, AK Swoboda – Capital Movements and Their Control: Proceedings of the Second Conference of the International Center for Monetary and Banking Studies BRILL, 1976 Retrieved 15 July 2012 ISBN 902860295X 2. ( -p. 332 of ) MR Brawley – Power, Money, And Trade: Decisions That Shape Global Economic Relations University of Toronto Press, 2005 Retrieved 15 July 2012 ISBN 1551116839 3. Chen, James (2009). Essentials of Foreign Exchange Trading. ISBN 0470464003. Retrieved November 15, 2016. 4. Hicks, Alan (2000). Managing Currency Risk Using Foreign Exchange Options. ISBN 1855734915. Retrieved November 15, 2016. 5. Johnson, G. G. (1985). Formulation of Exchange Rate Policies in Adjustment Programs. ISBN 0939934507. Retrieved November 15, 2016. 6. JA Dorn – China in the New Millennium: Market Reforms and Social Development Cato Institute, 1998 Retrieved 14 July 2012 ISBN 1882577612 7. B Laurens, H Mehran, M Quintyn, T Nordman – Monetary and Exchange System Reforms in China: An Experiment in Gradualism International Monetary Fund, 26 September 1996 Retrieved 14 July 2012 ISBN 1452766126 8. Y-I Chung – South Korea in the Fast Lane: Economic Development and Capital Formation Oxford University Press, 20 July 2007 Retrieved 14 July 2012 ISBN 0195325451 9. KM Dominguez, JA Frankel – Does Foreign Exchange Intervention Work? Peterson Institute for International Economics, 1993 Retrieved 14 July 2012 ISBN 0881321044 10. (page 211 – [source BIS 2007]) H Van Den Berg – International Finance and Open-Economy Macroeconomics: Theory, History, and Policy World Scientific, 31 August 2010 Retrieved 14 July 2012 ISBN 9814293512 11. PJ Quirk Issues in International Exchange and Payments Systems International Monetary Fund, 13 April 1995 Retrieved 14 July 2012 ISBN 1557754802 12. "Report on global foreign exchange market activity in 2013" (PDF). Triennial Central Bank Survey. Basel, Switzerland: Bank for International Settlements. September 2013. p. 12. Retrieved 22 October 2013.

References

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