Today's world is dominated by the rise of Japan as an economic and financial power. The corresponding weakening of America means that the familiar and comfortable post-war scenario with the American dollar leading and dominating the Free World is in upheaval around us - with inevitable political and economic repercussions. Behind all the world changes is the floating exchange rate system which has operated since the early 1970s. It is this system and its implications for our financial well-being today that are the subjects of this book. It sets out to explain how the world has come to have the floating exchange rate regime, how it operates and how and why exchange rates move. The book also explains the relevance and importance of this to all forms of financial investment as well as business management. Howard Flight, joint Managing Director of Guinness Flight Global Asset Management, sets out to make clear the intricacies of the exchange rate and its impact on everyday business life. He sketches his perception of the future outlook for exchange rates and the international ramifications. Sensible and well-diversed currency management reduces risk in an international context - to keep all your money in one currency is as imprudent as the old adage of keeping all your eggs in one basket. This book blows apart the myth that currency trading belongs in the trading rooms of large banks and government offices.