International Finance and Markets

Early Exchange Systems

• The Barter System, which involved direct exchange of goods and services without using money, was the earliest exchange system, but it was not established on a specific date.
• The primary method of exchange in the Barter System was the direct exchange of goods and services without using money.

Bretton Woods Agreement

• The Bretton Woods Agreement of 1944 had a major impact on the global monetary system, as it established a fixed exchange rate system and introduced the US dollar as a global reserve currency.

International Money Market (IMM)

• The primary focus of the International Money Market (IMM) is to facilitate the exchange of currencies and provide liquidity for international trade and investment.
• The International Monetary Fund (IMF) is responsible for maintaining global monetary stability in the IMM.
• A key benefit of the IMM is that it enables countries to manage their foreign exchange risks and maintain economic stability.
• The primary focus of the IMM is to facilitate the exchange of currencies and provide liquidity for international trade and investment.
• The key features of the IMM include facilitating the exchange of currencies, providing liquidity for international trade and investment, and enabling countries to manage their foreign exchange risks.
• The major segment handled by the IMM is the foreign exchange market, which involves the exchange of currencies between countries.

Gold Standard

• The Gold Standard, which linked currencies to the value of gold, was suspended in 1971, allowing currencies to float freely on the foreign exchange market.