The History of Foreign Currency
Since ancient times, humans have been trading with for various reasons surrounding the way barter system.
Along with age and civilization perkembangnya barter system this fall because the systems discovered so many disadvantages - a new payment system is to eventually use the money as a means of exchange and payment.
Payment system using the money also has to deal with the weaknesses of a country that has a different type of currency money.
The need for change arises because the value of the currency of a country is usually not accepted as a media device or change in other countries.
International trade relations caused by the demand and supply of some currencies.
This then led to the development of the stock exchange foreign money, so that regulators needed to millions of transactions demand and supply that occur every day, leading to determining the value of convertible foreign currency.
History of exchange / currency trading can be said that contemporary and new money itself that serious attention by many countries in the last decade.
If reviewed in the gold standard for decades (1880 - PD outbreak I), at the time the money guaranteed by the pure gold (pure) which is the standard of the country. Deficit balance of payment will be closed with the transfer of gold, to result in money supply and decrease prices abroad seems to increase, so this will increase the deficit to ekspor lost, so otherwise. Thus, the value of the currency relatively stable.
Until World War I, the gold standard allows reaching a high level of correction of the balance of payment. But not so at the time of war, probably because of growing trade companies and large enterprises, guarantee wages and prices so it is not easy to reduce the likelihood that such berdampak WORSHIP employment. Because membengkaknya unemployment in the early 1930s, the gold standard is not applicable.
After World War finished and the world economic recession in the 1930s, the world want a better economic stability.
On 22 July until 1944, the United States from Prakarsa, held a conference with international financial known: "The Bretton Woods Conference", attended by 44 countries. Motion proposed by the United States delegation (White Plan) to sort articles the agreed policy.
In the conference, created a fixed currency exchange system called the "Fixed Exchange Rate System," which has some similarities to the gold standard, where the load conditions:
1. Each country setting tukarnya value of currency USD;
2. United set the value of gold against USD (USD 35/ounce);
3. America will sell the gold price to remain the holder of the official currency USD;
4. Change the value of USD currency can not exceed 1%, when forced to be up to 10% max.
Since then countries - countries in the world and America began to grow rapidly and two years after the conference, the international financial institution established and the World Bank that we know at this time with the IMF (International Monetary Fund) and the Word Bank, to monitor the system.
Then changes occurred in the United States, the period of the 1960s, the balance of payment deficit of U.S. forces emasnya the proposed release of USD 18 billion USD because his French convert to gold and extended the period of the 1970s, America should re-release proposal emasnya of USD 11 billion. American economy was at that time led the world community to believe that less USD.
And in a country that has a strong currency money because the proposal has enough gold as Swiss and German, they changed it to GBP-currency that they CHF and KDC. This can result in short-term debt that is due in the United States reached nearly twice the proposed emasnya.
Bretton Wood system is only able to survive almost 30 years, on August 15, 1971, President Nixon announced a switch to change the value system by letting the value of USD tukarnya floating (Floating Exchange Rate System), this re-emphasized in a conference in Washington on 17 -18 December 1971 (Smithsonian CONFERENCE), from where the birth occurred and floating exchange value up to now.
After President Nixon set the value to a floating currency USD, many countries decided to float value tukarnya, such as: Germany, Great Britain, Netherlands, Japan and even years - the following year many countries in the world that let its funds floating in accordance with the value of the market mechanism, namely strength of demand and supply.
Along with age and civilization perkembangnya barter system this fall because the systems discovered so many disadvantages - a new payment system is to eventually use the money as a means of exchange and payment.
Payment system using the money also has to deal with the weaknesses of a country that has a different type of currency money.
The need for change arises because the value of the currency of a country is usually not accepted as a media device or change in other countries.
International trade relations caused by the demand and supply of some currencies.
This then led to the development of the stock exchange foreign money, so that regulators needed to millions of transactions demand and supply that occur every day, leading to determining the value of convertible foreign currency.
History of exchange / currency trading can be said that contemporary and new money itself that serious attention by many countries in the last decade.
If reviewed in the gold standard for decades (1880 - PD outbreak I), at the time the money guaranteed by the pure gold (pure) which is the standard of the country. Deficit balance of payment will be closed with the transfer of gold, to result in money supply and decrease prices abroad seems to increase, so this will increase the deficit to ekspor lost, so otherwise. Thus, the value of the currency relatively stable.
Until World War I, the gold standard allows reaching a high level of correction of the balance of payment. But not so at the time of war, probably because of growing trade companies and large enterprises, guarantee wages and prices so it is not easy to reduce the likelihood that such berdampak WORSHIP employment. Because membengkaknya unemployment in the early 1930s, the gold standard is not applicable.
After World War finished and the world economic recession in the 1930s, the world want a better economic stability.
On 22 July until 1944, the United States from Prakarsa, held a conference with international financial known: "The Bretton Woods Conference", attended by 44 countries. Motion proposed by the United States delegation (White Plan) to sort articles the agreed policy.
In the conference, created a fixed currency exchange system called the "Fixed Exchange Rate System," which has some similarities to the gold standard, where the load conditions:
1. Each country setting tukarnya value of currency USD;
2. United set the value of gold against USD (USD 35/ounce);
3. America will sell the gold price to remain the holder of the official currency USD;
4. Change the value of USD currency can not exceed 1%, when forced to be up to 10% max.
Since then countries - countries in the world and America began to grow rapidly and two years after the conference, the international financial institution established and the World Bank that we know at this time with the IMF (International Monetary Fund) and the Word Bank, to monitor the system.
Then changes occurred in the United States, the period of the 1960s, the balance of payment deficit of U.S. forces emasnya the proposed release of USD 18 billion USD because his French convert to gold and extended the period of the 1970s, America should re-release proposal emasnya of USD 11 billion. American economy was at that time led the world community to believe that less USD.
And in a country that has a strong currency money because the proposal has enough gold as Swiss and German, they changed it to GBP-currency that they CHF and KDC. This can result in short-term debt that is due in the United States reached nearly twice the proposed emasnya.
Bretton Wood system is only able to survive almost 30 years, on August 15, 1971, President Nixon announced a switch to change the value system by letting the value of USD tukarnya floating (Floating Exchange Rate System), this re-emphasized in a conference in Washington on 17 -18 December 1971 (Smithsonian CONFERENCE), from where the birth occurred and floating exchange value up to now.
After President Nixon set the value to a floating currency USD, many countries decided to float value tukarnya, such as: Germany, Great Britain, Netherlands, Japan and even years - the following year many countries in the world that let its funds floating in accordance with the value of the market mechanism, namely strength of demand and supply.
4:38 AM
|
Labels:
Forex Introduction
|
This entry was posted on 4:38 AM
and is filed under
Forex Introduction
.
You can follow any responses to this entry through
the RSS 2.0 feed.
You can leave a response,
or trackback from your own site.
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment