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Forex history

But while commercial companies have had to face a much more volatile currency environment in recent years, investors and financial institutions have found a new playground. The size of foreign exchange markets now dwarfs any other investment market by a large factor. It is estimated that more than USD1,200 billion is traded every day, far more than the world's stock and bond markets combined.

Timeline of foreign exchange

• 1944 – Bretton Woods Accord is established to help stabilize the global economy after World War II.
• 1971 – Smithsonian Agreement established to allow for greater fluctuation band for currencies.
• 1972 – European Joint Float established as the European community tried to move away from its dependency on the U.S. dollar.
• 1973 – Smithsonian Agreement and European Joint Float failed and signified the official switch to a free-floating system.
• 1978 – The European Monetary System was introduced so other countries could try to gain independence from the U.S. dollar.
• 1978 – Free-floating system officially mandated by the IMF.
• 1993 – European Monetary System fails making way for a world-wide free-floating system.