Forex Birthday
In 1976, the January 8 meeting of the finance ministers of the participating countries IMF in the city of Kingston, Jamaica. An agreement was made for a new arrangement the international monetary system. As of this moment, it is officially allowed to free floating of currencies. The IMF has stepped up its monitoring of the global economy.
According to the IMF classification, a country can choose one of three types exchange rateFixed, floating and mixed.
Steps were taken to diminish the role of gold as the world's means of payment. There was no longer an official price for gold, and they began to buy and sell it at market prices. Also, mandatory settlements in gold with the IMF were abolished.
All important decisions at the IMF are made by a qualified majority vote. The votes are distributed according to a country's quota, i.e., economically more powerful states have more votes. Therefore, throughout the fund's existence, the U.S. has played a major role in it, and no decision could have been made without U.S. support.
Thus, January 8, 1976 The year can be called the birth date of the modern global foreign exchange market, or FOREX market. Due to the fact that all restrictions on changes in exchange rates were removed, it opened up wide opportunities for speculative transactions.