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The Journey Undaunted

The Journey Undaunted
June 08
16:16 2014

Money is the chief controller in the modern era. Based on the total or the gross development profit the value of money is determined in the countries. The more the country is developed the value of the same arises. The scenario of the different currencies is present in the world since time unbound. Yet it is after the great economic depression during the First World War that the world was made aware of the variety of the economic policies and the importance of the currencies. The journey of the currency and the control of the same is age old. The foreign exchange market or the Forex is a trade organization that is run but some banks who take the decisive steps in the monetary transactions throughout the world. They check and select the relative values of the currencies. This is done to create an equality in the international trade and commerce. The financial institutions or the banks act as the social buffers and help on the exchange of the currencies on the international basis. There are a few insurance companies involved in the same as well. It is very important to know that these organizations have immense importance in the society. They enable the currency conversion and the international trade relations are maintained smoothly. They restrict the overall autocracy of any one particular currency and ensure a kind of non biased trade entity among all. Let us delve in the history pages and find out how the Forex, one of the chief economical controllers of the world have managed to make over such a huge amount of responsibility.

The money and the currency changing event is seen in the ancient times. The bible gives the evidence of the people who used to change the money and people who help others t change the money. The “kollybistes”, as they were normally called then used the walls of the city to make their publicity. Depending on the traditions and the cultures of varied kingdoms, the kings maintained varied currencies and they were changed by these people. Even we find the presence of the people exchanging and changing the currency in the ancient hieroglyphics as well. The Indus valley and the Mesopotamian civilizational traces reveal the presence of these people too. Then the currency change was inevitable due to the change on the size and the weight of the currencies. Currencies of silver and gold had varied values as well.

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In the medieval period we get the name of the family of the Medici who were the buffers in the exchange of the money. These people mostly are reported to have worked on behalf of the textile merchants. In Italy there has been an excavation which shows up some books commonly called the Nostro, which has the account of the local currency and the exchanged foreign ones. By 1704 the foreign exchanges were coming up in the European Union countries like the city Amsterdam and England. Later in the same century the Holland too came up with a similar idea.

By this one might be very sure of the need of having a foreign exchange market or the Forex. As the world from that ancient time did not follow the same currency to was of utmost necessity to have an exchange and international control department to keep the world in polar format. In the United States of America the name of the Alex Brown and Sons Company is being heard very much in the Forex policy makings. In the year of 1850 or the same decade he and his company started the foreign exchange in the Americas. During the 1880’s a man named Esperanto De Silva, of the Lisbon got the requisite permission to start a trade of exchanging the currencies. Basically the year of 1880 is commonly considered as the year of the world wide economic awareness. Yet the First World War would come inevitably and man unknowing to this did not yet give much notice to the position of the currencies worldwide.

The rate of the foreign exchanges of the countries increased considerable by 1913. This time the pound is the chief controller of all of the foreign exchanges. 3 to 71! The numbers of the banks that were operating in and around London were increased to the said extent within a span of five to six years. It was the time when man was understanding that to live we have to trade amongst ourselves and the economic conditions of the individual countries were making them have varied currencies so in order to continue the trade the fund and the currency should be made well aware of. Thus the Forex got a great shot up in the list and the numbers. Paris, Berlin, London was the centers of the international foreign exchange. By the year of 1928, these cities had the importance of the Forex placed just by the side of the economic functioning of the city.

The Second World War change d the total scenario. The president of the United States, Richard Nixon, brought about a free floating system in the currency exchange policy. They had given debts to the other countries during the war and now they demanded the amounts back n the terms of the US dollar. The rate of the Dollar was increased to a considerable height in few moment and America and the Forex of the same reached the Zenith of existence. After the year 1973, the Forex of the America has stayed on as the most important controller as the Dollar had became the chief international buy and sell unit.

This is the journey of the body that guards our chest and pockets. It is a long journey of the currency and the exchange of the same. One needs to understand it deeply. The Forex is not a day’s though and not a thought of  common man. This is a legacy of the ages. Money is requisite for trade and trade is needed to live and thus the money must be controlled. The Forex organizations are doing this tiresome job everyday and we must be aware of the same.

The Journey Undaunted - overview
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Articles on the Jadenforex blog written by "Jadenforex" include guest posts, and items written in collaboration with several authors.

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