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The Treaty of Bretton Woods
In 1967. Chicago bank refused to grant a loan in pound sterling college professor named Milton Friedman, because he intended to use the money for the sale of the British currency. Friedman, who felt that sterling was valued too high against the dollar, wanted to sell the currency, then later buy it back after the currency drops to settle with the bank, and thus get a quick profit. Disclaimers bank loans was due to the Bretton Woods agreement, signed by twenty years earlier, which fixed exchange rates in different countries against the dollar and the dollar to gold at the rate of $ 35 per ounce.

The Treaty of Bretton Woods was signed in 1944. to maintain financial stability in the world, restricting the movement of money across national borders and currency speculation. Prior to this contract, with the 1876g. before the First World War in the international economic system dominated by "gold equivalent". When "equivalent of gold" currency was pegged to the price of gold, thus ensuring stability. This eradicated the old practice of the rulers, the arbitrary currency devaluation and inflation calls.

But the "gold equivalent" was not without flaws. As soon as the economy of a country increased, it caused an increase in imports from abroad, has not reduced its gold reserves required to ensure its currency. As a result, uzhimalas money supply, interest rates rose and economic activity slowed down until the recession. Ultimately, prices of commodities reaches a minimum, become attractive to other countries, leading to buying boom, which filled the economy of the country's gold, it increases the supply of money in the economy, reduced interest rates, causing economic recovery. Such ups and downs in an era dominated by the "gold equivalent" to the beginning of World War I in breach of trade flows and free movement of gold.

After two world wars, a contract was signed in Bretton Woods, in which member countries agreed to make every effort to keep the course of their currencies within narrow boundaries against the dollar and gold, respectively. Countries were not allowed to devalue their currencies in order to obtain commercial advantage, and allows only the depreciation of less than 10%. At 50-years-increasing volume of international trade caused by the post-war construction, led to massive movements of capital. This destabilized the exchange rates established in Bretton Woods.

The agreement was finally repealed in 1971. and the U.S. dollar ceased to be convertible into gold. By 1973. currencies of major industrialized countries began to move more freely, mainly controlled by the level of demand and supply in the international currency market. Prices change every day, trading volume, speed and price volatility has increased in the 70th year, encouraging the creation of new financial instruments, market and trade liberalization.

In the 80th year with the advent of computers and new technologies of international capital flows increased, erasing the boundary between the Asian, European and American time zones. Volume of trades in the international currency market has increased from approximately $ 70 billion per day (80th year) to more than 1.5 trillion. $ A day two decades later.

Evrorynok
The main catalyst for the development of the International Monetary Market was the rapid development of the euro-dollar market: when American dollars were invested in banks outside the U.S.. The same applies to European markets, where the currency is located outside the country of origin. Euro-dollar market emerged in the 50th year, when oil revenue USSR (entire U.S.) was placed on deposit outside the U.S. for fear of freezing the accounts of the American authorities. This resulted in a significant increase in the amount of dollars, uvodimyh the control of U.S. authorities. The U.S. government enacted laws restricting the provision of dollars to foreigners. European markets were particularly attractive, as much less regulated, and offered a higher yield. Since the end of 80th years, American companies began credited abroad, finding Evrorynok advantageous point for the placement of excess liquidity, short-term loans and financing imports and exports.

London was and remains a major market. In the 80th year, he became a key point in the Euro-dollar market when British banks began to provide the U.S. as an alternative to pounds in order to maintain its leading position in the global financial market. Convenient locations in London, allowing work on the Asian and American markets, also contributes to maintaining its dominance in European markets.

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