Forex market is the place where people exchanging money. This infographic tells you what the first money was and how exchanging money started. And how currency exchange developed during the years.
When trade relations were just emerging, people used anything as money: rocks, shells, sugar, flour, clothes, slaves, precious metals and even teeth.
In the Middle Ages, there were moneychangers in Europe – such a man-bank was great on coins of the different states and exchanged them in the right way.
In 1867 in Paris the system of the gold standard was adopted: a unit of currency was equivalent to a certain amount of gold. Exchange rates were determined by the gold content of each currency.
With regard to the Bretton Woods system from 1944, the USA had the largest reserves of gold, so the dollar was firmly attached to gold and other currencies – to the US dollar.
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