Forex History

It may be said that the history of the forex market began with the origin of the global free-floating currency system. This originated with the Bretton Woods Accord, held in 1944 in New Hampshire, attended by delegates from Great Britain, France, and the United States.

The conference was held with the intention of creating a post-World War II global environment in which all the ravaged economies of Europe could rebuild. The outcome of the accord was the International Monetary Fund (IMF), an aid agency, and the pegging of the major currencies to the US dollar, the only major currency left unharmed by the war. This action did bring stability back to Europe, although it ultimately collapsed.

Similar agreements were made in its place, though with the new intention of ending the dependence of European currencies on the US dollar. By 1973 these too had failed, marking the conversion to a free-floating system, which was mandated in 1978. By 1993 there were no longer any agreements at all, allowing all currencies to move independently.

During the 1980s computers and other technology made substantial new developments that had a significant impact on the forex market, for example by increasing the speed with which international transactions could be made. Jumping from nearly a billion dollars a day in the 1980s to almost $1.9 trillion a day now, the forex market has experienced major growth in recent years.

Subsequent progression in the process of globalization has also been influential, as large corporations employ more people internationally (and therefore must exchange currency to pay them) and the economic policy of different nations becomes increasingly interrelated.
source: gocurrency