This study analyses trade and exchange rate problems with a view to making recommendations on appropriate exchange rate in economic policy within the Caribbean Community. Section 1 examines intra-Caricom trade performance and problems with a focus on structural characteristics and the factors that have determined the patterns of trade. Section 2 deals with existing exchange rate strategies and the overall considerations that might help to influence them. Section 3 discusses the possibilities for exchange rate cooperation with the region. The report ends with a summary of the principal conclusions and gives recommendations.