30-s XX century The world financial crisis. Is the destruction of trade and economic ties. Thing of the past times, the rule of gold coin standard. By the mid 30's London becomes the world's financial center. British pound sterling at that time was the main currency for trade transactions and the establishment of foreign exchange reserves. Even then pound jargon called "Cable" ( "cable"). This name is connected with the fact that the means of communication with the transactions was the telegraph and the information transmitted by cable . In 1930, the Swiss city of Basel was established Bank for International Settlements. The goal was financial support for young independent states and nations, is experiencing balance of payments deficit. 1944 In the United States was

the Bretton Woods conference. It is believed the end of the US-British rivalry. The conference was attended by two major figures: John Maynard Keynes (England) and Harry Dexter White (USA). They managed to create and adopt a new order for the world financial system under the circumstances. The main provisions of the Bretton Woods system The International Monetary Fund has become a vital institution that monitors international financial and economic relations; Declared the currency, playing the role of international reserves (the dollar and the de facto pound); There are adjustable parities of currencies to the U.S. dollar (possibly rejecting - 1%); dollar pegged to gold (ounce of gold - $ 35); IMF members have the right to change parities only with the consent of the IMF; Upon completion of the transition period, all currencies should be convertible; to comply with this principle, all governments commit themselves to keep international reserves and, if necessary - to carry out intervention in currency markets. Members of the IMF makes contribution of currency and gold. 1947 To pause the onset of communism in the United States adopt a program of recovery of European economies. U.S. Secretary of State Marshall, in his report to outline a plan under which the European economy is healthy to a level where it can maintain its own military capabilities. One of the challenges is utolenie "dollar famine". When in 1949 the U.S. dollar liabilities Europe accounted for 3.1 billion, then in 1959 they reached 10.1 billion dollars. to 1958 Most European countries declared free convertibility of their currencies. 1964 Japan announced the convertibility of its currency. Following the announcement of convertibility among major currencies, it became clear that the United States are no longer able to maintain the price of $ 35 per ounce of gold. The dollar, inflation was a threat to the United States. Kennedy administration had adopted a number of incorrect actions - put a tax on the interest differential, raising the cost of foreign borrowing, and a program of voluntary restriction of foreign credits. Taxes and restrictions have led to the emergence of a new market - Eurodollar market. 1967 A devaluation of the English pound, which caused the latest blow to the illusory stability of the Bretton Woods system. In the 60th years, the U.S. balance of payments deficit leads to a reduction in gold reserves from 18 to 11 billion dollars. At the same time, a rise in U.S. external debt. 1970 In the United States sharply reduced interest rates, which creates a dramatic crisis of the dollar. Within a short span of time comes a massive outflow of capital from the United States to Europe, where interest rates were higher. May 1971 Germany and the Netherlands announced a temporary free-floating their currencies. August 1971 Growth deficits forced the United States President R. Nixon suspended convertibility of dollars into gold. December 1971 At a meeting in the Smithsonian Institution in Washington was a last attempt to save the Bretton Woods system. Interval exchange rate deviations from parity was increased to 4.5%. Keep the boundary interval has been very difficult. And some time later the Bundesbank held an intervention for the sum of 5 billion dollars. It was a huge sum in those times, but it has not brought success. Currency Exchange in Europe and Japan had to be temporarily closed, and the U.S. announced the devaluation of the dollar by 10%. Developed countries have ceased to maintain a fixed parity and let currency swimming. 1973-1974 United States repeals the tax on a phased interest differential, and a program of voluntary restriction of foreign credits. Bretton Woods system ceased to exist. In the last years of the Bretton Woods system of currency traders will benefit a great speculative profits in the period followed the termination of intervention of central banks. After the rejection of the possibility of extracting the fixed rate of return that have been severely limited. Many banks suffered major losses, and two well-known - "Bankhaus Hershtadt" in Colon and Frenklin National in New York - even gone bankrupt due to failed speculation. 1976 A Jamaica Conference (in Kingston). Representatives of the world's leading states have established new principles of the world monetary system. States renounced the use of gold as a means to cover the deficit in international payments. The main elements of the new interstate system in favor of regulating the exchange relations, currency convertibility. Means of payment in favor of national currencies. The main mechanism by which the international currency transactions are commercial banks. 1978 A European Monetary System (EMS). The core of EMU is a grid of cross-rates with the central and boundary values of exchange rates. In general, EMU reminds Bretton Woods. If the cross-rate close to the border, both sides are obliged to conduct an intervention. The key currency EMU - doychmarka. 1985 Gradually, the ECU is not countable, as a natural tool. Available in the ECU-denominated traveler's checks and credit cards, banks offer deposits in the ECU. January 1999 In the market of a new European currency euro, which replaced the European Currency Unit. 11 European countries have recorded rates of exchange in relation to the euro. The European Central Bank began to manage the monetary policy of the European Monetary Union (EMU). Fixed exchange rates of participating in European Monetary Union Euro: EUR / LUF 40.3399 Luxembourg Franc EUR / BEF 40.3399 Belgian Franc EUR / IEP 0.787564 Irish Pound EUR / FIM 5.94573 Finnish Markka EUR / PTE 200,482 Portuguese Escudo EUR / ESP 166,386 Spanish Peseta EUR / ITL 1936.27 Italian Lira EUR / FRF 6.55957 French Franc EUR / DEM 1.95583 Deutsche Mark EUR / NLG 2.20371 Dutch guilder EUR / ATS 13.7603 Austrian Schilling Unlike other financial markets, foreign exchange is the biggest volume of trades, the lowest value of transactions, the fastest movement of money. This is the only global market, operating 24 hours a day. Its liquidity has increased by 1 trillion dollars a day. Currently, operations in the foreign exchange market are the main source of revenue for the leading banks such as Chase Manhattan Bank, Barclays Bank, Swiss Bank Corporation and others has become a classic George Soros speculation on the sale of the English pound against the German mark, which is within 2 weeks had a billion dollars of net profit, making the famous Soros and laid the foundation of his charitable work.