International Finance: Recent Developments in Foreign Exchange Markets

Pursuant to a congressional request, GAO reviewed emerging issues in foreign currency exchange markets, focusing on: (1) developments in the foreign exchange market; (2) the economics of foreign exchange rate determinations; (3) the role of speculation in foreign exchange trading; (4) the efficacy of government intervention to influence exchange rates; and (5) the European Exchange Rate Mechanism (ERM) crisis in September 1992.