During 2004 till 2008, Malaysian exchange rate faced a depreciation. Based on this situation, what is the reason of the depreciation happen in that year?
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During 2004 till 2008, Malaysian exchange rate faced a
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- Asian financial crisis and the Thai baht. On July 3, 1997, the Thai baht was unpegged from the U.S. dollar and promptly depreciated from THB 25 = US$1 to THB 60 = US$1. What was the baht's percentage depreciation against the US$? Compute the percentage depreciation/appreciation of the baht from the U.S. dollar perspective. Do you get the same result with a minus sign as you did from the baht's perspective? Explain.The Ringgit went from RM3.60 at end-2009 to RM3.10 at end-2010 against the US$.a) Which currency appreciated? Which depreciated?b) Determine the percentage appreciation or depreciation of the Ringgit.c) Determine the percentage appreciation or depreciation of the US$.Explain how you will manage each of these situations. The major export markets of your company have suffered a substantial depreciation in their currency rates compared to the AUD.
- Which one of the following statements is NOT correct? a) A repurchase agreement is the sale of a non-monetary asset together with an agreement to repurchase it a specified future date b) The difference between the price at which a commercial bank sells an asset to the central bank and the price at which it agrees to buy it back can be expressed as an annualized percentage of the selling price, and this is called the refinancing rate c) In the UK the refinancing rate is known as the repo rate d) If the central bank raises its refinancing rate then the commercial banks will try to increase their lendingIn October 2014, the Malaysian Ringgit (MYR) was trading at MYR3.30 per US Dollar (USD). If the ringgit is now trading at MYR4.20 per USD, what is the percentage change in the ringgit’s value? Is this an appreciation or depreciation? A) 27.27% (Depreciation) B) 27.27% (Appreciation) C) The value remains unchangedExchange Rates Turkish Lira has been depreciating rapidly in the past two years. How this depreciation affects Turkish economy? Discuss using theory
- In December 1994 the government of Mexico officially changed the value of the Mexican peso from 3.2 pesos per dollar to 5.5 pesos per dollar. Required : What was the percentage change in its value? Was this a depreciation, devaluation, appreciation, or revaluation? Explain. Calculate the Percentage Change in Value Values of Peso - Initial exchange rate (peso/$) 3.20 New exchange rate (peso/$) 5.50Compared with using the Singapore dollar as Acceletron’s functional currency for 2007, ifthe US dollar were the functional currency, it is most likely that Redline’s consolidated:A . inventories will be higher.B . receivable turnover will be lower.C . fi xed asset turnover will be higher.Golden Ltd is an exporting company and it will have receivables in Malaysian ringgit in coming years. It expects the Malaysian ringgit to depreciate against the US dollar over time. It wants to get rid of its transaction exposure by denominating the exports in US dollars but that it is still subject to operating exposure. The long-term hedging techniques are constrained and it does not know how much Malaysian ringgit it will receive in the future, so it is difficult even if a long-term hedging method was available. How can Golden Ltd lessen its exposure in the case?
- A. XYZ Ltd has a system of depreciating its assets at a higher rate than required. The value of assets are much higher valued than its position as shown in the Balance sheet. What is the purpose achieved by XYZ Ltd in devaluing its Assets? State with reasons. B. As on 31st March, 2021 the company has receivables account of its exports in terms of US Dollars. The rate of US Dollar on 20th May, 2021 has reduced by 20%, causing a substantial loss to the company. What are the matters to be stated in this regard in the Annual Report for 2020-21 ?Last year, the exchange rate between the Korean won and the US dollar was KWN 1020 = USB 1. This year, the exchange rate is KWN 1150 =USB 1 . Has the Korean won appreciated or depreciated over the past year? Explain.A shift to expecting depreciation in the domestic currency will lead to: a. an inflow of capital to domestic economy b. an increase in the demand for domestic country currency- denominated financial assets c. uncovered interest parity d. a decrease in the demand for domestic country currency denominated financial assets
