Synopsis In a globalized financial environment where massive capital flows across countries and continents with minimal restrictions, exchange rate management policies acquire great significance. This book dwells on the exchange rate management in emerging economies of Asia. South East Asian economies like Thailand, South Korea and Indonesia have witnessed severe financial turbulence during 1997. There is a substantial difference between dejure and de facto classifications, between what countries say they do and what they actually do. Many Asian countries are reluctant to float their currencies freely. They crave a return to some measure of exchange rate stability. But even those who wish to peg or maintain their peg, like Hong Kong, have a problem. To whom should they peg? It is remarkable that these emerging Asian economies are a major source of net external financing for capital-rich economies, particularly the United States.