The reforms undertaken by the previously centrally planned economies (PCPEs) of Eastern Europe1 in their transition to market economies are unprecedented in scale. A central aspect of the reforms has been the integration of these countries into the international monetary and trading system. Now that several Eastern European economies have experienced more than one year of reform, following a variety of approaches, it seems useful to survey some general aspects of their choices of exchange arrangement. It is hoped that the analysis may help to inform the choices of other PCPEs that are less advanced in the reform process—in particular, the states of the former U.S.S.R., which are not, however, discussed in the paper.