An indispensable book especially tailored for banking diploma examinees, and students pursuing courses in banking and finance in the universities and colleges. The book incorporates everything, well almost everything, one needs to know about foreign exchange and foreign trade financing. It traces the development of international trade and payment systems, modes of payments, letters of credit, modes of trade financing, kaleidoscope view of the changing panorama of exchange rates, international organizations and payment unions, foreign exchange trading including, in particular, the arithmetic for calculation of exchange rates.