Belarus empowered to run trades in foreign currencies. The so-called gold standard kept the dollar at a stable value of 1/35 of an ounce of gold. Here are 10 biggest players in the foreign exchange market, according to Euromoney's 2017 FX Survey 2017. Banks also engage in the swift market. The history of the gold standard explains why gold was chosen to back up the dollar.
According to the gold price history, gold was the only metal the United States used to back up the value of the nations paper currency. Once Nixon abolished the gold standard, the dollar's value quickly plummeted. The trading system is adapted for electronic documents. This way, they have just limited their risk in the future. Japan prefers to use methods that are more indirect though, such as raising or lowering interest rate to affect the yen's value. The dollar index was established to give companies the ability to hedge this risk. Now, the Exchange is a universal financial market, which can be conditionally divided into five major sectors: the foreign currency market, the government securities market, the market of shares and corporate bonds, the repo operations market, the derivatives market. Role of Central Banks Central banks don't regularly trade currencies in foreign exchange markets.
Foreign currency market