Let me go ahead and tell you all about the fascinating things I know about foreign exchange and the foreign exchange market. Forex is basically a short form for foreign exchange.
What happens in the forex market?
The forex market is a place where you exchange one currency for another. If you want to exchange GBP to the USD, this is where you would do it. Most of the transactions and exchanges of foreign currencies happen on the forex market.
- China was the first country to make paper money in the world. It happened 1400 years ago.
- Leading up to the second world war, tea was actually used as a form of currency in Asia. It spanned in China, Mongolia, Central Asia and Tibet.
- The GBP or the British Pound Sterling is the oldest currency in the world that is still being used today. It is also one of the most valuable currencies in the world.
- The word dollar actually finds its origin in Eastern Europe. Silver coins were called dollars and used widely in Europe between the 16th and the 19th century.
- Almost every single trader knows that one Canadian dollar is known as a loonie.
- The two-dollar Canadian coin is known as a toonie.
- The Franc dates back very early; it dates back to the 1300s.
- Did you know that the largest denomination bill ever printed in the United States is $100,000? It was printed in 1934, and the US Bureau of engraving and printing issued $100,000 gold certificate bills for use by the Federal reserve banks so that they can transfer the funds between themselves. It is not available for any kind of public use. It is actually fun to think that the hundred thousand dollars that was printed is way more valuable than the actual value, right now.
- The bank for international settlements, which is also known as BIS, is owned by the central banks, and it is known as the bank for central banks. That is a mouthful, isn’t it?
- The forex market is actually open 24 hours a day, five days a week. The take-off on the weekends, for two days.
- The forex market is also one of the most liquid markets in the world. You can find trillions of dollars in liquid cash, in this market.
- It is certainly fascinating that the transactions per day can go up to $7 trillion.
- There are more than 10 million traders in the world, and this number continues to grow.
- The dollar was officially adopted in the US as a unit of currency, in the year 1785.
- Did you know that the euro currency actually began to be used electronically in the year 1999, in January?