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While forex trading dates back a long time, modern forex trading only started in This is the time when the post-WWII Bretton Woods agreement broke down, ending controlled exchange rates and beginning an era of floating currencies. The US Federal Reserve only came into existence in Before that, any US bank could issue their own money.
Talk about lack of control over fiscal policy. While we think of currency markets as a relatively new invention, money changers were first mentioned in the Talmud, which dates back to biblical times.
The money changers charged a commission, of course. Although the US dollar is by far the largest currency traded today, back in the early 20th century, the UK pound took pride of place.
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