Charles Woo had been excited when he had arrived in Mexico City to take over the foreign exchange department for his bank's branch in Mexico in the late fall of 1994. He had needed some respite from his hectic pace as a currency trader over the previous five years at the headquarters of the bank in New York. He had also felt that he had to move on with his career and had to take on bigger challenges and responsibilities. The department he headed in Mexico was responsible for satisfying all foreign currency needs of corporate clients with operations in Mexico. Many of these customers were subsidiaries of US multinationals. These clients wanted competitive quotes on the spot and forwards in a number of currencies as well as advice on managing their foreign currency risks. About 96% of the demand, however, was for contracts in US dollars. People in the headquarters in New York also expected him to provide information and analyses to set forward rates for pesos for up to five years ahead. Having spent the previous two weeks reading whatever he could lay his hands on about the Mexican economy and the society, he was looking forward to living in another culture