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After WWII

30 April, 2015 - 15:56

After WWII the Bretton Woods Accord was signed allowing currencies to fluctuate within a range of 1% to the currencies par 1. In Japan the law was changed during 1954 by the Foreign Exchange Bank Law, so, the Bank of Tokyo was to become because of this the centre of foreign exchange by September of that year. Between 1954 and 1959 Japanese law was made to allow the inclusion of many more Occidental currencies in Japanese forex 2.

President Nixon is credited with ending the Bretton Woods Accord, and fixed rates of exchange, bringing about eventually a free-floating currency system. After the ceasing of the enactment of the Bretton Woods Accord (during 1971 3) the Smithsonian agreement allowed trading to range to 2%. During 1961-62 the amount of foreign operations by the U.S. of America's Federal Reserve was relatively low 4, 5. Those involved in controlling exchange rates found the boundaries of the Agreement were not realistic and so ceased this in March of 1973, when sometime afterward none of the major currencies were maintained with a capacity for conversion to gold, organisations relied instead on reserves of currency 6, 7. During 1970 to 1973 the amount of trades occurring in the market increased three-fold 8, 9, 10.At some time (according to Gandolfo during February-March 1973) some of the markets' were "split", so a two tier currency market was subsequently introduced, with dual currency rates. This was abolished during March of 1974 11, 12, 13.

Reuters introduced during June of 1973 computer monitors, replacing the telephones and telex used previously for trading quotes 14.