Publisher Summary This chapter discusses foreign exchange. All aspects of the foreign exchange system from its origins to the 20th century are treated in P. Einzig's, The History of the Foreign Exchange. The same author has written A Textbook on Foreign Exchange, in which he discusses how the system has operated in the years since the Second World War and considers the supports points mechanism, which is now responsible for its stability. He examines official intention and its reason, timing, and method. Functions of private arbitrage are mentioned along with exchange control, Euro-currency markets, markets in investment currencies, the inter-bank sterling market, and foreign exchange policies and history. L. E. Walton, in his, Foreign Trade and Foreign Exchange, has done an analysis of the theory of international trade, procedure involved in importing and exporting, the various types of contracts involved, and the methods of payments used. Documentary bills are dealt with in some detail and there is a description of foreign exchange and foreign exchange markets. A thorough grounding in the principles of the foreign exchange system and definitions of terms, with information on causes of fluctuations and how they are limited, is provided by H. E. Evitt, A Manual of Foreign Exchange.