Forex Trading Floors Blog "where did it all begin" part 2
Medieval and later
The Forex Trading team is following on from last weeks blog on "Where did it all begin" in the Ancient times to The Medieval times and later.
The Medici family, also known as the House of Medici, controlled Florence through much of the Renaissance, though regardless of their power and success and appearance of democracy they remained private citizens and were rulers of Florence by hereditary means.
In 1397 Giovanni de Medici who was a banker for Palpal Court and a wealthy and very influential man secured headquarters in Florence, but it was his son Cosimo the Elder that took over as the unofficial head of state in Italy. This succeeded in wealth and political power from the 13th century on to the 15th Century. It was to become the largest and most highly thought of bank in Europe during its time.
It was during the fifteenth century the Medici family were required to open banks at foreign locations in order to exchange currencies to act for textile merchants. They created the Nostro (Italian translation meaning “ours”) with an account book which contained two columned entries showing amounts of foreign and local currencies, information specific to the keeping of an account with a foreign bank. This is the first formal system that has been evidenced.
During the 17th century Amsterdam continued to maintain an active forex market with a template for future forex markets. During 1704 foreign exchange took place between agents acting in the interests of the nations of England and Holland.
Next week on "Where did it all begin" we will be continuing with our blog by looking at The Early Modern Times.
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