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analyse the past FX market behavior of eur/jpy pair in 2021 and 2022. Provide reason that impact this pair of currency
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- Define the term terminal project balance?If the expected inflation rate is 5% and negotiators agree that the real wages should rise by 7%, the two sides will agree to an increase in the money wage of how many percent?The U.S. dollar is still considered the most traded and the most stable currency in the world. It is easily converted over to other currencies when trading and is also the official currency of several U.S. territories. However, a strong U.S. dollar has both advantages and disadvantages. One of the advantages that was already mentioned is that the conversion of the U.S. dollar over to other countries is fairly easy and grants it a greater degree of buying power for foreign products. This also makes foreign imports cheaper not to mention investors benefit when engaging in FDI. The disadvantages of a strong U.S. dollar is that it makes it more expensive for foreign countries to import products from the U.S., which negatively affects industries and business owners within that country as a result. It can even negatively affect the U.S. because those that conduct business internationally will technically earn less from foreign sales if their currency is not fully convertible. Overall, even…
- The U.S. dollar is still considered the most traded and the most stable currency in the world. It is easily converted over to other currencies when trading and is also the official currency of several U.S. territories. However, a strong U.S. dollar has both advantages and disadvantages. One of the advantages that was already mentioned is that the conversion of the U.S. dollar over to other countries is fairly easy and grants it a greater degree of buying power for foreign products. This also makes foreign imports cheaper not to mention investors benefit when engaging in FDI. The disadvantages of a strong U.S. dollar is that it makes it more expensive for foreign countries to import products from the U.S., which negatively affects industries and business owners within that country as a result. It can even negatively affect the U.S. because those that conduct business internationally will technically earn less from foreign sales if their currency is not fully convertible. Overall, even…Case Summary :Managing Foreign Currency Exposure at 3M The closing case explores the implications of changing currency values at 3M. With about 60 percent of its annual revenues coming from outside the United States, 3M is especially vulnerable to fluctuations in exchange rates. Indeed, 3M believes that adverse currency movements cost the company some $42 million in pretax profits in 2018, and $11 million in 2017. 3M uses various strategies to reduce its exchange rate risk including forward contracts and foreign currency debt. 1-a) If the dollar depreciates in value against most other countries over the next year, what will the impact be on 3M? 1-b) Should3M hedge against adverse movements on foreign exchange rates? How should it do this?Why might the RBA Board choose to increase the target cash rate? 1, to prevent inflation from rising above its target range. 2, to prevnt inflation falling below its target range. 3, to stop australian dollar from appeciating on the foreign exchange market. 4, to put download pressure on unemployment. 5, to put upward pressure on share price.
- Ghana cedi is the best performing currency against US dollar’ – BawumiaThe cedi is the best performing currency in the world against the US dollar. This is according to Vice President Dr. Mahamudu Bawumia.The cedi depreciation, which has been a major problem in the country over the years, has even led to the inauguration of the FX Development Committee to tackle issues relating to the depreciation of the cedi and find solutions to them.The cedi last year depreciated by more than 12.7 percent, the worst performance since 2015 when the cedi depreciated by more than 14.6 percent.But commending the governing New Patriotic Party (NPP) for the good work done in sustaining the cedi at the Town Hall meeting held at Kumasi on Tuesday, the Vice President said there has been a major change in the cedi’s performance since the NPP got into power.“Indeed for us, if the cedi is to match what the NDC record is, in terms of the nominal change in the currency, we’d have to do a quadruple jump which…Let us assume you have 1,000,000 of USD, what will profits be if an arbitrage opportunity exists when you observe the following FX rates: The USD-EUR rate is $0.85/€, the USD-GBP rate is $1.60/£ and EUR/GBP is €2/£.Q3-11 If a country ties its currency to a specific foreign currency and allows its holdings of that currency to govern the country's money supply, this arrangement is known as a Select one: a. currency board. b. floating exchange rate. c. monetary union. d. Special Drawing Right.
- With aid of a diagram, explain the impact of the devaluation of the Dominican Republic dollar on the price of imported raw material on aggregate Supply and Gross Domestic Product (GDP) in the economyRelative inflation rates affect interest rates, exchange rates, the overall economic health of a country, and the operations and profitability of multinational companies. Consider the following statement: Countries with lower inflation rates will have lower interest rates. The currency of a country with a higher inflation rate than Japan’s inflation rate will (appreciate or depreciate) over time against the yen.Identify which of the following would cause cost-push inflation and demand-pull inflation. Indicate using separate diagrams for each. a. Depreciation of the rupee and its impact on oil price b. Expansion of the RBI balance sheet due to greater credit to government c. Extreme winters in Europe causing increased demand for coal d. Increased cash transfers in the form of unemployment allowance by the government e. Increase in the custom duty on raw material