History
Many businesses were unconcerned with and did not manage foreign exchange risk under the Bretton Woods system of international monetary order. It wasn't until the onset of floating exchange rates following the collapse of the Bretton Woods system that firms perceived an increasing risk from exchange rate fluctuations and began trading an increasing volume of financial derivatives in an effort to hedge their exposure. The outbreak of currency crises in the 1990s and early 2000s, such as the Mexican peso crisis, Asian currency crisis, 1998 Russian financial crisis, and the Argentine peso crisis, substantial losses from foreign exchange have led firms to pay closer attention to foreign exchange risk.
Read more about this topic: Currency Risk
Famous quotes containing the word history:
“You that would judge me do not judge alone
This book or that, come to this hallowed place
Where my friends’ portraits hang and look thereon;
Ireland’s history in their lineaments trace;
Think where man’s glory most begins and ends
And say my glory was I had such friends.”
—William Butler Yeats (1865–1939)
“Let it suffice that in the light of these two facts, namely, that the mind is One, and that nature is its correlative, history is to be read and written.”
—Ralph Waldo Emerson (1803–1882)
“The best history is but like the art of Rembrandt; it casts a vivid light on certain selected causes, on those which were best and greatest; it leaves all the rest in shadow and unseen.”
—Walter Bagehot (1826–1877)