The article discusses the functions, limits, and risks of the Foreign Exchange Market. It covers topics such as dealing and pricing in the market, technology and settlements, accounting for treasury hedging activities, hedging strategies, and the impact of economic influences on foreign exchange rates. The research also explores the role of corporate treasurers and fund managers in managing foreign exchange risk. Additionally, it delves into forecasting foreign exchange rates, the position of Sterling in the EMS, and the implications of the European Monetary Union.