Its still allowed, but be careful with Google update. If you over optimize, especially for link exchange, I m worry if your site will be penalty from Google. Just do link exchange naturally.
Now, can we do Link Exchange?
Google updates releases the url must be related to your business, but we beware of Google updates. Yes, its good option. You can change your link and you can receive link from others.
no we no longer get credit for reciprocal links
All that Google's Matt Cutts has ever said is to avoid doing link exchanges excessively.
I agree that link exchanges do need to be with sites in the same niche.
"Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote." -- Benjamin Franklin
I have tried many link exchange websites, but none seem to be any good, can someone please tell me if they know of a good one?