Forex Business Branches

International Banking offices / branches

International Banking Deptt,
The Bank of Rajasthan Ltd.
Corporate Office,
11/12, Raghuvanshi Mills Compound,
Senapati Bapat Marg,
Lower Parel,
Mumbai – 400013
Shri Gaurang Vasavada,Asstt. General Manager
91-09324446700(M)
Tel - 91-22-30400026/22-32533423
Fax: 91-2-24983657/22-30401826
E - Mail : ibd@rajbank.com

Forex Branches:
AHMEDABAD
Opp. Town Hall, Elise Bridge , Ashram Road,
Ahemdabad-380006 (Gujrat )
Branch Head: Sh.N.K Bhutani - AVP I
Tel : 91-79-32987300,32930570,09327022112(M)
FAX : 91-79-6579227
Swift: BRAJINBBARA
E-Mail: arahmedabad@rajbank.com

BANGALORE
Maruthi Complex,
325,5th Main Rd,
Gandhi Nagar ,
Bangalore-560009(Karnataka)
Branch Head: Sh. B.L Sharma - Chief Manager
TEL : 09341289405(M), 91-80-32912664, 32980928
FAX : 91-80-22260540
Swift: BRAJINBBBLR
E-Mail: bangalore@rajbank.com

BHILWARA
14-A,Gandhi Nagar,
Gangapur Chouraha,
Pur Road, Bhilwara-311001(Rajasthan)
Branch Head: Sh.P.C Gangwal - Asstt.Vice President-I
TEL : 093521 45167(M), 91-1482-321008, 329813
FAX : 91-1482-242021
Swift: BRAJINBBGNB
E-Mail: gnbhilwara@rajbank.com

CHENNAI
10,Wavoo Complex,
2nd floor,191,N.S.C Bose Road,
Chennai-600001 (Tamil Nadu)
Branch Head: Sh.Vimal Jain - Senior Manager
TEL : 093810 61901(M), 91-44-32925807, 32956336
FAX : 91-44-25383416
SWIFT : BRAJINBBMAS
E-Mail: Chennai@rajbank.com

HYDERABAD
15-1-503/A 83,Hotel Rajdhani Complex
P.B No. 1124,Siddiamber Bazar,
Hyedrabad-500012 (A.P)
Branch Head: Sh.N.L Bapna, Asstt.Vice President-II
TEL : 91-40- 32925879, 32404600, 093910 55308(M)
FAX : 91-40-24745920
SWIFT : BRAJINBBHYD
E-Mail: hydrabad@rajbank.com

INDORE
19/1, New Palasia ,
Indore-452001 (Madhya Pradesh)
Branch Head: Sh.C.P Jain - Chief Manager
TEL :0731-3268191 , 3297267, 093021 22941(M)
FAX: 0731-2543717
SWIFT : BRAJINBBNPI
E-Mail: npindore@rajbank.com

JAIPUR
1. Overseas Branch,Raj.Bank Building
Johari Bazar,Jaipur-302001(Rajasthan)
Branch Head: Sh.D.K Jain, AVP II
Tel : 093146 39003(M), 0141-3256139, 3220729
Fax : 91 - 141 – 2575820
TLX : 365 - 22960
SWIFT : BRAJINBBOSJ
E-Mail: ovjaipur@rajbank.com

2. Raj Bank Building,
Bhagat Bhawan,M.I.Road,
Jaipur-302001(Rajasthan)
Branch Head: Sh.Akheklesh Behari Shrivastava, AVP-II
TEL : 0141-3205629, 3227721, 093146 32337(M)
FAX : 91-141-2364819
SWIFT : BRAJINBBMIJ
E-Mail: miroadjaipur@rajbank.com

JODHPUR
Chand Shah Takia Market ,
Sojati Gate,Jodhpur-342003(Rajasthan)
Branch Head: Sh.S.M Sharda - Chief Manager
TEL : 09314224690(M), 91-291-3247001, 3293695,
FAX : 91-291-2650407
SWIFT : BRAJINBBSGJ
E-Mail: sgjodhpur@rajbank.com

KOLKATA
Hall & Anderson Building ,
31, Chowringhee Road,
Calcutta-700016 (West Bengal)
Branch Head: Sh Bhaskar Basu - Asstt.Vice President-I
TEL : 093310 83904(M),033-32518318, 32969038,
FAX : 91-33- 22498482
SWIFT : BRAJINBBCRC
E-Mail: crcalcutta@rajbank.com

MUMBAI
1. Overseas Branch ,
Ground Floor,Mittal Towers ,
C-Wing,
Nariman Point,Mumbai-400021
Branch Head: Shri Ashok Sharma - Sr. AVP
TEL : 91-22-32606415(D), 093230 40779(M),
32509220,32515999,32508029,
Forex Dealing Room 91 - 22 - 22826660
FAX : 91-22-22826069
SWIFT : BRAJINBBOSM
E-Mail : ovmumbai@rajbank.com

2. 18/20, Cawasji Patel Street ,
Jeevan Jyoti Building, Fort
Mumbai-400023 (Maharastra)
Branch Head: Sh.S.P Rastogi - AVP II
TEL : 91-22-32533799(D), 093224 06069(M),
32603987,32531342,32520560,32922022
FAX : 022-22873471
Swift: BRAJINBBBYF
E-Mail: fortmumbai@rajbank.com

3. Vishal Apartments,Shopping Centre ,
Andheri Kurla Road, Andheri (E)
Mumbai -400069 (Maharastra)
Branch Head: Sh.Anil Morey - Chief Manager
TEL : 91-22-32507701,32531345,093226 44416(M)
Fax: 91-22-26832872
Swift: BRAJINBBBANM
E-Mail: andherimumbai@rajbank.com

4. Treasury Branch,
Jeewan Jyot Building,3^rd Floor,
18/20,Cawasji Patel Street,
Mumbai-400001
Forex Dealing Room: 91-22-66378356/22-66378357
Back Office: 22823025/22823027
Branch Head: Shri J.L.Chimpa.,Chief Manager
Tel::022-22823028 (D)/91-0932644440 (M)
E-mail: forexcell@rajbank.com ,trebrmumbai@rajbank.com
Swift: BRAJINBB

NEW DELHI
1. Overseas Br.
204 Surya Kiran Building ,
19, Kasturba Gandhi Marg
Branch Head: Mr.A.K Awasthi - Asstt.Vice President-III
TEL : 093508 22885, 91-11-23730823, 32422050
FAX : 91-1123730072
SWIFT : BRAJINBBOSD
E-Mail: ovdelhi@rajbank.com

2. E-17, South Extension , Part-II
New Delhi-110049
Branch Head: Sh. C.P Sharma - Asstt. Gen. Manager
TEL : 093139 87986, 011-32442779, 32404599
FAX : 91-11- 26259561
SWIFT : BRAJINBBDSE
E-Mail: sedelhi@rajbank.com

3. F-42, Kolhapur Road , Kamla Nagar
Branch Head: Sh Praveen Kumar Behl - Senior Manager
TEL : 91-11-32591777, 93139 78041(M)
FAX : 011-23841990
SWIFT : BRAJINBBDKN
E-Mail: kndelhi@rajbank.com

PANIPAT
Opp. I.B. College,G.T Road,
Panipat 132103 (Haryana)
Branch Head: Sh.Hemant Desai - Manager
Tel : 0180329593/3206802/09371031343(M)
Swift: BRAJINBBPPT
E-Mail: panipat@rajbank.com

PUNE
579, Sadashiv Peth ,
Umbrya Ganpati Chowk,Laxmi Road,
Pune-411030(Maharastra)
Branch Head: Sh.H.C Sharma - Senior Manager
TEL : 91-020-32514440/09371063110(M),
FAX : 91-020-24459851
Swift:BRAJINBBPUN
E-Mail: pune@rajbank.com

SILVASSA
Plot No 282-283,Trimula Complex,
Vapi Main Road, Opp.Jumma Masjid
Silvassa-396230 (UT of Dadra & Nagar Haveli),
Branch Head: Sh.Hemant Desai - Manager
Tel : 0260-3295648,0260-3293956/09377000659(M)
FAX : : 0260-2463590
Swift: BRAJINBBSIL
E-Mail: silvasa@rajbank.com

TIRUPUR
18 Court Street,
Tirupur 641601
Distt. Coimbatore (TN)
Branch Head: Sh.K.R. Pillai, Sr. Manager
TEL : 0421-3295948/09344219884(M)
FAX : 0421-2235005
SWIFT : BRAJINBBTIR
E-Mail: tirupur@rajbank.com

UDAIPUR

Bapu Bazar,
Udaipur-313001.(Rajasthan)
Branch Head: Sh.Anil Kothari, Asstt.Gen.Manager
TEL : 91-294-3291955, 3296170,3202060, 093525-23819(M)
FAX : 91-294-2410098
Swift:BRAJINBBBBU
E-Mail: bbudaipur@rajbank.com

Forex Branch locator

HDFC Forex Branch Locator:-

http://www.hdfcbank.com/personal/forex/forex_branch_locator.htm


ICICI Forex Branch Locator:-

http://www.icicibank.com/pfsuser/icicibank/investments/fes/ForexBranchLocator.htm

SBBJ Forex Branches

Chandni Chowk Branch
Outside Katara Neel, Chandni Chowk, Delhi - 110 006
SBBJINBB013
SBBJ0010013
sbbj10013@sbbj.co.in

Nehru Place Branch
71-72 Laxmi Bhawan, Nehru Place, New Delhi - 110 019
SBBJINBB014
SBBJ0010666
sbbj10666@sbbj.co.in

Lawrence Road Br
5, Community Centre,Lawrence Road Industrial Area, Delhi - 110 035
SBBJINBB015
SBBJ0010355
sbbj10355@sbbj.co.in

Nie Ph-I Branch
Payal Cinema Building,First Floor,Narayana Ind. Estate Phase-I, New Delhi -110 028
SBBJINBB016
SBBJ0010309
sbbj10309@sbbj.co.in

Ibb,Jaipur Branch
International Banking Branch,Chaura Rasta, Jaipur - 302 003
SBBJINBB017
SBBJ0010552
sbbj10552@sbbj.co.in

Bkk,Jodhpur Branch
Basni Phase-I, Bhagat ki Kothi Jodhpur - 342 003
SBBJINBB019
SBBJ0010375
sbbj10375@sbbj.co.in

Sbsc,Udaipur Brnch
Sahakari Bazar Shopping Centre, Shastri Circdle, Udaipur - 313 001.
SBBJINBB020
SBBJ0010446
sbbj10446@sbbj.co.in

C C Udaipur Branch
Chetak Circle, Udaipur - 313 001
SBBJINBB021
SBBJ0010209
sbbj10209@sbbj.co.in

Bhadohi Branch
Bhadohi, Distt Varanasi, PIN - 221 401
SBBJINBB023
SBBJ0010384
sbbj10384@sbbj.co.in

Tirupur Branch
58, Municipal office road, Tirupur - 641 604
SBBJINBB024
SBBJ0010288
sbbj10288@sbbj.co.in

G N Bangalore Brnch
122, VI Cross, Gandhinagar, Banglore - 560 009
SBBJINBB025
SBBJ0010434
sbbj10434@sbbj.co.in

Overseas Mumbai Br
Nirmal Building, Nariman Point, Mumbai - 400 020
SBBJINBB027
SBBJ0010731
sbbj10731@sbbj.co.in

Forex? What is it, anyway?

The market

The currency trading (FOREX) market is the biggest and the fastest growing market on earth. Its daily turnover is more than 2.5 trillion dollars, which is 100 times greater than the NASDAQ daily turnover. (click here to read full market background by Easy-ForexT).

Markets are places to trade goods. The same goes with FOREX. The Forex goods (or merchandise) are the currencies of various countries. You buy Euro, paying with US dollars, or you sell Japanese Yens for Canadian dollars. That's all.

How does one profit in Forex?

Very simple and obvious: buy cheap and sell for more! The profit is generated from the fluctuations (changes) in the currency exchange market.

The nice thing about the FOREX market, is that regular daily fluctuations, say - around 1%, are multiplied by 100! (in general, Easy-ForexT offers trading ratios from 1:50 to 1:200). If, for example, the exchange rate of "your" pair of currencies increased by 0.6% in the last 4 hours, your profit will be 60% on your investment! Such can happen in one business day, or in a few hours, even minutes.

Moreover, you cannot lose more than your "margin"! You may profit unlimited amounts, but you never lose more than what you initially risked and invested.

You can implement your choice (the pair of currencies, the volume amount) under any direction to which the market is moving, and yet make profit. It does not matter whether the exchange rate is going up or down: you can always decide to buy Euro and sell dollar, or vice versa - buy dollar and sell Euro. You don't have to physically possess certain currencies in order to perform "buy" or "sell" with them.

How do I start?

Register (Easy-ForexT offers the simplest and quickest registration process, no obligation); deposit your first trading "margin" amount (credit cards are welcome, only by Easy-ForexT); start trading.

It can't be simpler or easier than that. Need help? We'll provide you with 1-on-1 training and service, as much as necessary (Easy-ForexT offers real people service, live, in your own language).

Forex Education Tips - 5 Steps to Successful Forex Trading

Close to 95% of all Forex traders will lose money. We're not just talking about novices, either. Whether you trade Forex for a living, as a hobby or just for fun, odds are against your success. That's a simply astonishing fact. However, the remaining 5% of Forex traders somehow manage to break even and there are those lucky few that actually make money in the currency market – consistently!

Like the TV show says … “How’d they do that, anyway?”

That's the million dollar questions, isn’t it? Countless books, seminars and expos have been hosted to answer this very question. That sad fact is that thousands of books have been written and countless seminars and interviews have been conducted in an attempt to answer the magic questions. The reality of the situation is that there is no magic formula; no one single Holy Grail of Forex trading.

So what do the successful traders do that the rest of us have simple not comprehended. They have mastered a process of winning where they combine and customize several factor to produce consistent results. They have mastered the Process of Trading.

The Process of Trading is:

Strategy > Money Management > Self-Mastery

Here are some simple Forex Education tips to help you master the process of forex trading:

Success Tip #1 – You’ve Got To Have a Plan

You must have a written business plan that will detail all aspects of your trading. When are you going to trade, how much to risk, strategies for entries and exits are just o name a few. To become a consistent (profitable) Forex trader you have to plan your trade sand trade your plan.

Simplicity rules! Don’t make this plan too complicated. One sheet of paper for you mission statement and another for your trading plan should suffice. Anything more is probably too complicated.

Success Tip #2 – Focus on Your Personal Psychology

Knowing yourself will allow you to master the discipline necessary to execute high quality trades with solid money management techniques. Lack of discipline is fatal in Forex trading. Go on a personal journey to identify you attitudes towards risk and money. Get intimate with your strengths and weaknesses as a trader and build in to your trading plan strategies to minimize those weaknesses and maximize your strengths.

Different personalities lend to different trading styles. Get familiar with all the different styles and over time you will begin to gravitate towards one particular style. Don’t fight the urge like I did. I insisted I was a day trader, but had only limited results. I found my winning percentages were much higher when I entered swing trades. Guess what’s my bread and butter strategy now!

Success Tip #3 – Be Realistic About Your Expectations

This is a hard one, I know! I am on the internet every day and the amount of advertising is staggering. Brokers are offering free education (fox in the hen house if you ask me), forums of all different trading styles and points of view. Gurus pushing their system as “the one” that will make you the big bucks. How do you get through all that noise?

Let me tell you loud and clear right now – everyone is right and everyone is wrong. You have to make a personal commitment to become a successful trader, find a trading style that works for you and expect a slow and steady approach to wealth building through Forex.

What works for me may not work for you. Expect to go through an exploratory period where you are learning and at the same time exploring yourself as a trader. Keep an open mind and don’t pay attention to all the noise out there.

Success Tip #4 – Exercise Patience

Rome was not built in a day and neither will your trading account. In fact, I tell all of my students that while they are studying to become successful Forex traders they should not look solely at their account balance as an indication of success or failure.

By tracking and increasing your percentage of high quality trades you execute is a far better barometer of your progress than your account balance. Cause and effect rule here. Over time when you increase your probabilities through the execution of high quality trades your account balance will respond accordingly.

Keep the focus on the process and with time your results will blow your mind.

Success Tip #5 - Money Management Is Top Priority

I would rather have a shaky strategy and excellent money management techniques than the other way around. This topic warrants its own blog post to do it justice. Limited your exposure (read “risk”) allows for you to stay in the game and allow the laws of probability to work.

Let’s take a casino for example. They need gamblers to frequent their slot machines to make money. Why? They have a game that has a greater than 50% chance of making money for the house. The more people that play the slots, the greater the casino’s profits.

The casino controls risk by payout tables (always favoring the house!) and increases their probabilities by keeping gamblers at the slot machines (read “free drinks”). As a trader you must limit your risk by committing only 1% - 3% of available capital to a single trade. When you execute enough trades with a high probability strategy you too can clean up like the casinos – but only by staying in the game long term.

In conclusion, Forex trading is not easy. It’s hard work and will test the limits of your patience and perseverance. If anyone tells you otherwise .., buyers beware! It can be a very rewarding and profitable venture if done correctly. In the end it is a profession that requires a learning curve and practical experience, no different than an airline pilot or engineer. Understanding how to approach and learn this game will allow you to reap all the benefits advertised. It is your Forex Education that you will master the Process of Forex Trading.

ABOUT THE AUTHOR: Todd Judkins specializes in teaching real people how to trade the Forex market for long term success by focusing on strategic, mind and money skills. He is a currency trader, educator and success coach to traders.

How to Adopt the Traits of a Successful Trader ?

Hey Traders,

Here's a post by Heather Johnson that will serve you well in your trading - Enjoy.

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Not all Forex traders were cut from the same cloth, but the most successful investors do have several things in common. Whether you are a newcomer to trading or you are a seasoned pro who is trying to improve your game plan, the following suggestions may help you out. Below are five ways to evolve into a successful trader:

1. Become a lifelong student – Never stop learning about the business you are in. If you think you know everything about the Forex market, then think again. The successful trader is a lifelong student who constantly absorbs new information about the ever-evolving climate of Forex trading.

2. Be courageous – It's hard to overcome your fears when you are dealing with an unpredictable investment. Even if you are equipped with extensive knowledge about the market, you still have to put your money at risk every day. Reserve a small amount of apprehension (just enough to keep you sensible), but don't hesitate at every turn.

3. Hone your math skills – You are wading through a sea of mathematical information every day when you look over your charts. The most successful traders know how to take that large amount of information and pull out necessary information.

4. Be patient – Become a long-term investor and put all notions of overnight success to rest. You must adopt a stoic attitude, as you make the most informed decisions about your business and leave the rest to fate.

5. Learn to love trading – Maybe you already do love trading and that's why you are involved with Forex. However, many people are either too wrought with anxiety to enjoy it or merely see it as a job. If you don't like trading, don't trade. A great trader will love the roller coaster ride he/she is on.

Are the above suggestions obvious? Perhaps, but many of us take a wrong turn somewhere and need some simple advice to get us back on track. In order to stay on top of your game, you will need to constantly reinvent yourself, as there is no world that calls for flexibility more than the Forex market.

About the Author:

Heather Johnson is a freelance finance and economics writer, as well as a regular contributor for CurrencyTrading.net, a site for currency trading and forex trading information.

Trust Yourself

When you turn on the TV (especially mainstream media) you are inundated with news of the demise of the dollar. Business news, national news and even your local news channels are leading into events with reports of the dollar and the economy. Analysts are featured and opinions are smattered across the airwaves in an attempt to provide an oracle response to current economic events.

Beware the source and follow your system.

In these volatile times it is easy to get caught up in the hype provide by all the news media and analyst. It is natural to want to look for guidance. Remember to trust your system and more important trust yourself. You, after all, are the single largest determinant of your success.

Your approach should remain consistent, almost impervious to the events occurring because you follow your plan with discipline and ruthless detail to executing at optimum performance.

Be disciplined and follow your plan. If market conditions don’t suite your style – sit this one out until conditions provide your with your personal edge!

Happy Trading..

Do you have what it takes to become a successful Forex Trader?

Forex trading, or any trading for that matter, is an occupation that requires experience and the accumulation of proficiency not unlike any other highly skilled profession. Whether you are a leading executive at a major publically traded company, a professional golfer or trading from your kitchen table, there are 5 key ingredients that one must possess in order to become successful.

1. You must be Passionate about what you do.

As Forex traders we all face one unique set of circumstances that does not exist in any other profession. We get rewarded for when we succeed and equally punished when we don’t! Could you image a corporate worker one quarter receiving a significant accomplishment bonus and the next quarter actually getting money taken from their paycheck for missing performance targets? Not on your life!

We do as Forex traders and that is why passion for what you do will carry you through the tough times that are part of your trading business. Asked yourself why you trade currencies and would you still do it if Forex were not potentially lucrative? Your answers will be quite revealing. You’ve got to feel your passion for trading!

2. You have to Apply Yourself and work hard at it.

I talk to so many people that enter into Forex trading with the aspiration of getting rich quick. Without putting the time and energy into really getting good at trading I see them jump from strategy to strategy looking for the goose that will lay the golden egg and eventually quitting while blaming everything else, except the true cause.

I got news for you – you are the goose and your Forex education is the golden egg. The magic has always resided with the magician and not some strategy. Work hard at trading and the rewards will eventually come your way. Remember what Tiger Woods said, “Funny, the harder I work the luckier I get.” Apply yourself as a trader and it will be no accident when your account begins to blossom.

3. You must Focus to really get good at what you do.

Now here is the hurdle most Forex traders struggle to get over. You have the passion and you are applying yourself to your trade, now focus and really get good at just at what you are doing. Be the expert to the experts at just that one thing. Become the master of a strategy or risk management methodologies. Really focus on getting good at it.

Stop jumping around or getting pulled from the last “latest and greatest” into the next “latest and greatest” and focus on one aspect of Forex trading and know it inside out. Know it strengths and weakness. Set your sights on becoming expert on just one aspect of trading and watch it spill over in all other aspects for your currency trading. This is the time to fail forward fast, use every setback as a learning opportunity that will propel you 3-steps ahead!

4. You must Push Yourself beyond the point everyone else might have quite.

In Forex Trading this is simple. Assume there is someone on the other side of your trade that is pushing themselves and sharpening their edge. To be successful you must you must do the same thing. Now is the time to examine your mental edge. Do you know the single most critical factor in any currency trade? It is you, the trader! Sharpening you mental edge is the most difficult aspect of trading, but also the most rewarding.

Start with your Forex education and gain the self-awareness necessary to maximize your strengths and suppress your weaknesses. Any expert will tell you that trading is 80% mental. It’s time to sharpen your trading to the razor’s edge and you do this through Forex education. A constant and never ending process that will become the cornerstone of your Forex experience.

5. You must, without wavering, be Determined and Persist to your objective.

You will fail. I can state that emphatically. However, you will not be defeated unless you allow your failures to control your trading. It is the old adage; failure is not falling of your horse, failure is refusing to get back on. Your success depends on your ability to dismiss the criticism, rejection, self-doubt and pressures associated with Forex trading.

Defining what is a winning trade, losing trade and bad trade will go a long way into developing you as a successful trader. Without the determination and persistence in all aspects of your trading life, obstacle will definitely appear closer and larger than they actually are.

Take a moment and assess yourself and your trading. Do you have the key elements to succeed? Which areas are presents development opportunities? When conducting a self-evaluation it is critical to be totally upfront and honest with yourself. After all, you will only be dishonest with yourself. One of the most interesting observations you can make is that all key success factors are interwoven. One factor supports the other. This is why your Forex education is a continuous journey of forex strategy, money management and self-mastery. Set these factors as your Forex education goals and take your currency trading to new heights.

Happy Trading.

Bold 2009 Prediction for Forex Traders

Here's my bold prediction for you in 2009:

You will break your trading resolutions by the end of February.

• You will abandon your trading plan
• You will fall into the same destructive trading patterns you resolved to change
• Your account will earn the same or less than in 2008

I know this this sounds harsh, but statistically speaking, that's what will happen to most traders. So, are you going to let this happen to you?

True, statistics cover populations and not individual traders. The fact is, its traders who are outside of the norm and trade with focused discipline that really achieve their financial goals. When is now the time to re-focus with discipline and dedication and really commit yourself to your trading plan?

Today is January 15, 2009 and February is just around the corner.

Let this be your wake-up call!

Be honest with yourself and focus with the discipline of a seasoned trader on staying true to your trading plan or risk becoming a statistic!

Happy "Disciplined" Trading!!

The History of the Forex Market

An overview into the historical evolution of the foreign exchange market This article will follow the historical roots of the international currency trading from the days of the gold exchange, through the Bretton Woods Agreement, to its current setting. The Gold exchange period and the Bretton Woods Agreement.

Prior to Bretton Woods, the gold exchange standard -- paramount between 1876 and World War I -- ruled over the international economic system. Under the gold exchange, currencies experienced a new era of stability because they were supported by the price of gold.

However, the gold exchange standard had a weakness of boom-bust patterns. As a country's economy strengthened, its imports would increase until the country ran down its gold reserves, which were required to support its currency. As a result, the money supply would diminish, interest rates escalate and economic activity slowed to the point of recession. Ultimately, prices of commodities would hit bottom, appearing attractive to other nations, who would rush in and amid a buying frenzy inject the economy with gold until it increased its money supply, driving down interest rates and restoring wealth into the economy. Such boom-bust patterns abounded throughout the gold standard until World War I temporarily discontinued trade flows and the free movement of gold.

The Bretton Woods Agreement, established in 1944, fixed national currencies against the dollar, and set the dollar at a rate of USD 35 per ounce of gold. The agreement was aimed at establishing international monetary steadiness by preventing money from taking flight across countries, and to curb speculation in the international currency market. Participating countries agreed to try to maintain the value of their currency within a narrow margin against the dollar and an equivalent rate of gold as needed. As a result, the dollar gained a premium position as a reference currency, reflecting the shift in global economic dominance from Europe to the USA. Countries were prohibited from devaluing their currency to benefit their foreign trade and were only allowed to devalue their currency by less than 10%. The great volume of international Forex trade led to massive movements of capital, which were generated by post-war construction during the 1950s, and this movement destabilized the foreign exchange rates established in Bretton Woods.

The year 1971 heralded the abandonment of the Bretton Woods in that the US dollar would no longer be exchangeable into gold. By 1973, the forces of supply and demand controlled major industrialized nations' currencies, which now floated more freely across nations. Prices were floated daily, with volumes, speed and price volatility all increasing throughout the 1970s, and new financial instruments, market deregulation and trade liberalization emerged.

The onset of computers and technology in the 1980s accelerated the pace of extending the market continuum for cross-border capital movements through Asian, European and American time zones. Transactions in foreign exchange increased intensively from nearly billion a day in the 1980s, to more than $1.9 trillion a day two decades later.

The Euromarket

A major catalyst to the acceleration of Forex trading was the rapid development of the eurodollar market; where US dollars are deposited in banks outside the US. Similarly, Euromarkets are those where assets are deposited outside the currency of origin. The Eurodollar market first came into being in the 1950s when Russia's oil revenue-- all in dollars -- was deposited outside the US in fear of being frozen by US regulators. That gave rise to a vast offshore pool of dollars outside the control of US authorities. The US government imposed laws to restrict dollar lending to foreigners. Euromarkets were particularly attractive because they had far less regulations and offered higher yields. From the late 1980s onwards, US companies began to borrow offshore, finding Euromarkets a beneficial center for holding excess liquidity, providing short-term loans and financing imports and exports.

London was, and remains the principal offshore market. In the 1980s, it became the key center in the Eurodollar market when British banks began lending dollars as an alternative to pounds in order to maintain their leading position in global finance. London's convenient geographical location (operating during Asian and American markets) is also instrumental in preserving its dominance in the Euromarket.

The Bretton Woods Agreement

In 1967, a Chicago bank refused a college professor by the name of Milton Friedman a loan in pound sterling because he had intended to use the funds to short the British currency. Friedman, ho had perceived sterling to be priced too high against the dollar, wanted to sell the currency, then later buy it back to repay the bank after the currency declined, thus pocketing a quick profit. The bank's refusal to grant the loan was due to the Bretton Woods Agreement, established twenty years earlier, which fixed national currencies against the dollar, and set the dollar at a rate of $35 per ounce of gold.

M. Friedman

The Bretton Woods Agreement, set up in 1944, aimed at installing international monetary stability by preventing money from fleeing across nations, and restricting speculation in the world currencies Prior to the Agreement, the gold exchange standard--prevailing between 1876 and World War I--dominated the international economic system. Under the gold. exchange, currencies gained a new phase of stability as they were backed by the price of gold. It abolished the age-old practice used by kings and rulers of arbitrarily debasing money and triggering inflation.

But the gold exchange standard didn't lack faults. As an economy strengthened, it would import heavily from abroad until it ran down its gold reserves required to back its money. As a result, money supply would shrink, interest rates rose and economic activity slowed to the extent of recession. Ultimately, prices of goods had hit bottom, appearing attractive to other nations, which would rush into buying sprees that injected the economy with gold until it increased its money supply, and drive down interest rates and recreate wealth into the economy. Such boom-bust patterns prevailed throughout the gold standard until the outbreak of World War I interrupted trade flows and the free movement of gold.

After the Wars, the Bretton Woods Agreement was founded, where participating countries agreed to try and maintain the value of their currency with a narrow margin against the dollar and a corresponding rate of gold as needed. Countries were prohibited from devaluing their currencies to their trade advantage and were only allowed to do so for devaluations of less than 10%. Into the 1950s, the ever-expanding volume of international trade led to massive movements of capital generated by post-war construction. That destabilized foreign exchange rates as set up in Bretton Woods.

The Agreement was finally abandoned in 1971, and the US dollar would no longer be convertible into gold. By 1973, currencies of major industrialized nations became more freely floating, controlled mainly by the forces of supply and demand which acted in the foreign exchange market. Prices were floated daily, with volumes, speed and price volatility all increasing throughout the 1970s, giving rise to new financial instruments, market deregulation and trade liberalization.

In the 1980s, cross-border capital movements accelerated with the advent of computers and technology, extending market continuum through Asian, European and American time zones. Transactions in foreign exchange rocketed from about $70 billion a day in the 1980s, to more than $1.5 trillion a day two decades later.

The Explosion of the Euromarket

A major catalyst to the acceleration of Forex trading was the rapid development of the eurodollar market; where US dollars are deposited in banks outside the US. Similarly, Euromarkets are those where assets are deposited outside the currency of origin. The Eurodollar market first came into being in the 1950s when Russia’s oil revenue-- all in dollars -- was deposited outside the US in fear of being frozen by US regulators. That gave rise to a vast offshore pool of dollars outside the control of US authorities. The US government imposed laws to restrict dollar lending to foreigners. Euromarkets were particularly attractive because they had far less regulations and offered higher yields. From the late 1980s onwards, US companies began to borrow offshore, finding Euromarkets a beneficial center for holding excess liquidity, providing short-term loans and financing imports and exports.

London was, and remains the principal offshore market. In the 1980s, it became the key center in the Eurodollar market when British banks began lending dollars as an alternative to pounds in order to maintain their leading position in global finance. London’s convenient geographical location (operating during Asian and American markets) is also instrumental in preserving its dominance in the Euromarket.

The Gold Exchange and the Bretton Woods Agreement.

In 1967, a Chicago bank refused a college professor by the name of Milton Friedman a loan in pound sterling because he had intended to use the funds to short the British currency. Friedman, who had perceived sterling to be priced too high against the dollar, wanted to sell the currency, then later buy it back to repay the bank after the currency declined, thus pocketing a quick profit. The bank’s refusal to grant the loan was due to the Bretton Woods Agreement, established twenty years earlier, which fixed national currencies against the dollar, and set the dollar at a rate of $35 per ounce of gold.

The Bretton Woods Agreement, set up in 1944, aimed at installing international monetary stability by preventing money from fleeing across nations, and restricting speculation in the world currencies. Prior to the Agreement, the gold exchange standard--prevailing between 1876 and World War I--dominated the international economic system. Under the gold exchange, currencies gained a new phase of stability as they were backed by the price of gold. It abolished the age-old practice used by kings and rulers of arbitrarily debasing money and triggering inflation.

But the gold exchange standard didn’t lack faults. As an economy strengthened, it would import heavily from abroad until it ran down its gold reserves required to back its money; consequently, the money supply would shrink, interest rates rose and economic activity slowed to the extent of recession. Ultimately, prices of goods had hit bottom, appearing attractive to other nations, who would rush into buying sprees that injected the economy with gold until it increased its money supply, and drive down interest rates and recreate wealth into the economy. Such boom-bust patterns prevailed throughout the gold standard until the outbreak of World War I interrupted trade flows and the free movement of gold.

After the Wars, the Bretton Woods Agreement was founded, where participating countries agreed to try and maintain the value of their currency with a narrow margin against the dollar and a corresponding rate of gold as needed. Countries were prohibited from devaluing their currencies to their trade advantage and were only allowed to do so for devaluations of less than 10%. Into the 1950s, the ever-expanding volume of international trade led to massive movements of capital generated by post-war construction. That destabilized foreign exchange rates as setup in Bretton Woods.

The Agreement was finally abandoned in 1971, and the US dollar would no longer be convertible into gold. By 1973, currencies of major industrialized nations floated more freely, as they were controlled mainly by the forces of supply and demand. Prices were floated daily, with volumes, speed and price volatility all increasing throughout the 1970s, giving rise to new financial instruments, market deregulation and trade liberalization.

In the 1980s, cross-border capital movements accelerated with the advent of computers and technology, extending market continuum through Asian, European and American time zones. Transactions in foreign exchange rocketed from about $70 billion a day in the 1980s, to more than $1.5 trillion a day two decades later.

Today's Currency World

In the 30 years since the collapse of the last gentlemanly agreement on currency rates, many momentous events have occurred that have affected currencies worldwide. The Japanese yen gained prominence because of Japan's heavy export relationship with the United States. The USSR collapsed. We have had several undeclared wars, the south Asian economies have risen and collapsed, and several investor bubbles have come and gone.
Each time, currencies have come away with a newly earned respect by the masses. There has also been a constant element of surprise that keeps you guessing what's next.
Current conditions, such as the United States' perpetual war on “terror”, the permanent introduction and dominance of the euro currency, the steady O.P.E.C. increases in oil prices, and gold's renaissance as a store of value, will likely have a tremendous impact on the future of what it means to trade currencies.
This could be a fundamental shift in the next phase of currency development.

New Rules of Currency

In 1971, the Smithsonian Agreement replaced the Bretton Woods Agreement and authorized “forward currency contracts”, adding validity to the Eurodollar phenomenon. It didn’t work. A year later the European Joint Float was established. It, and the Smithsonian Agreement, were scrapped in 1973. Even though they were dissolved the concept of “forward currency contracts” stayed as part of the banking system.
Once currencies began to “free-float”, they immediately moved away from their gentlemanly 1% fluctuations on either side to huge price ranges, going anywhere from 20-25% daily.
From 1970-1973, the total foreign exchange volume went from US$25 Billion to US$100 Billion. With oil prices up, gold prices up, and an economy still reeling from the rapid currency shift, “stagflation”, rising inflation while real incomes remained the same, soon hit the United States.

The 1970's United States Currency Policy Meltdown

Once again, we are hit with the triumvirate of war, the restrictive gold standard, and dollars in foreign banks.
This time, each problem was feeding directly off of the others. The Vietnam Conflict had drained our gold reserves heavily. By 1970, Fort Knox only held US$12 Billion.
The growth of the oil business and the increase in foreign trade caused a boom in the demand for US dollars in foreign banks. Over US$ 47 Billion was sitting in overseas banks.
On paper, our gold reserves were over-leveraged by almost 4 to 1. As a nation, we did not know how to react to such an overbearing assault on our currency. Then along came the invention of the Eurodollar to make our nightmare worse.
Foreign banks with US dollars would make low-interest loans in US dollars to importers and exporters. Although the dollars were never repatriated, the US was still on the hook to exchange these “credit”-created dollars for the gold we kept on reserve.
Then came a miracle in disguise . The Bretton Woods Agreement collapsed. In the over-leveraged gold-dollar environment, many countries began to feel frustrated with the artificial peg.
In blatant defiance to the agreement in 1971, Germany declared that they would float the Deutsche mark. They were tired of the artificial peg that was keeping their economy depressed.
In the first hour of trading, over US$1 billion were exchanged for Deutsche marks. For the first time, the public had voiced their opinion against being so heavily weighted with dollars.
With Germany completely ignoring the Bretton Woods Agreement by floating their currency, the US government had nothing left to do but put the final nail in the coffin of the U.S.'s currency policy. The Bretton Woods Agreement was dissolved.
Three short months after the Deutsche mark began to float, the US moved off of the gold standard. Gold was allowed to float freely like any other currency. Oil, although priced in US dollars, soon switched to a peg against gold. Gold and oil prices jumped ten-fold.
The currency dynamics were soon changed on a global scale and it became accepted practice that countries began to float their own currency.

Pre-Currency Trading Era – The 1950s

Entering into the 1950s, the United States of America had a distinct advantage over war-torn Europe. While Germany was heavily sanctioned, England, France, Italy, and several other Old World nations were just coming to terms with the heavy investment needed to rebuild their countries.

As a way to make it easier for the rest of the world to rebuild, the Bretton Woods Agreement was adopted. It was innocuously simple: in an effort to keep the United States of America (USA) from buying everything in sight, the Bretton Woods Agreement kept the USA in check by requiring all foreign currencies be pegged to the US Dollar. Some pegs were strong, some pegs were weak, but at the end of the day they never moved more than 1% in any direction. Like today's problem with the Chinese Yuan, forced to a peg against the dollar, it kept a constant, controlled flow of US dollars out of the country.
The peg would not have been so bad if not for the fact that the US dollar also had a unique relationship with gold. Just like currencies, gold was pegged to the dollar at a fixed value of US$35/ounce. What made it even worse was that US currency, at the time, was directly exchangeable for gold. This strategy was fine as long as the Fort Knox gold reserves exceeded $23 billion.
After World War II, the USA became the primary economic super power. Many foreign countries began to acquire US currency in lieu of gold. The dollar gained prominence in a way no other currency ever had before.
At the same time, we began to see the rebuilding of the Old World and foreign trade began to gain momentum. In 1950, foreign countries held US $8 billion. We also saw the oil business begin its ascent as a prominent import/export industry.

The History Of Forex

The Forex trading market is a relatively new phenomenon. Never before in the history of the world have we seen such an amazing event. In only 30 years, this industry has developed from almost nothing to a daily US$1.5 trillion market. How did this happen? Was it by design? Or was it by accident?
Well the answer falls somewhere in between. There are three distinct time frames that set the stage for today's style of currency trading. The first time frame is the pre-currency trading era of the 1950s. The second time frame is the worldwide, politically volatile atmosphere of the 1970s. The third time frame is what has occurred in this free market economy since the demise of the gold standard 30 years ago. In each time frame, there have been three catalysts: war, gold, and foreign banks- that have played a significant role in propelling currency development.

Today's Currency world

In the 30 years since the collapse of the last gentlemanly agreement on currency rates, many momentous events have occurred that have affected currencies worldwide. The Japanese yen gained prominence because of Japan's heavy export relationship with the United States. The USSR collapsed. We have had several undeclared wars, the south Asian economies have risen and collapsed, and several investor bubbles have come and gone.
Each time, currencies have come away with a newly earned respect by the masses. There has also been a constant element of surprise that keeps you guessing what's next.
Current conditions, such as the United States' perpetual war on “terror”, the permanent introduction and dominance of the euro currency, the steady O.P.E.C. increases in oil prices, and gold's renaissance as a store of value, will likely have a tremendous impact on the future of what it means to trade currencies.
This could be a fundamental shift in the next phase of currency development.