Exchange and inflation rates, Financial Econometrics

The Gujistan dollar until January 1st 2009 was pegged to the USA dollar. As at 31st December 2008, the official spot rate between the two currencies was G$0.6147 = US$1, while the unofficial (parallel or black market) rate, which was a more accurate reflection of the value of the currency, was G$1.1500 = US$1. The USA dollar rate to the British pound then was $1.6700 = £1.

The government of Gujistan recently accepted its Central Bank's recommendation to dismantle all forms of exchange rate control in the country and also allow its currency to float freely. However there is yet to be an active market for the currency among international banks, and they are reluctant to quote forward rates for the currency at the moment.

Inflation rate in the UK is expected to remain stable at 2.5 percent per annum for the foreseeable future. The inflation rate in Gujistan in 2009 was 20 percent but this expected to decline to 15 percent in 2010, 13 percent in 2011, and subsequently stabilize at 10 percent for the foreseeable future.

Posted Date: 3/18/2013 6:04:52 AM | Location : United States







Related Discussions:- Exchange and inflation rates, Assignment Help, Ask Question on Exchange and inflation rates, Get Answer, Expert's Help, Exchange and inflation rates Discussions

Write discussion on Exchange and inflation rates
Your posts are moderated
Related Questions
Question : (a) Why OLS cannot be applied in the presence of simultaneous equation bias? b) i) Prepare a simultaneous equation model for the supply and demand of dentist in

Question You want your portfolio beta to be 1.20. Currently, your portfolio consists of $100 invested in stock A with a beta of 1.4 and $300 in stock B with a beta of .6. You h

Determine whether the proposed investment in Gujistan satisfies the investment criteria set by PASE plc. Also discuss the limitations of the criteria in the context of this project

Acceptance Testing is a functional trial done on a product previous to put on the market or distributed to the purchaser. The acceptance testing procedure is intended to replicate

If current ratio for a company is equal to its acid test (that is, quick ratio), then: A: The current ratio must be less than one. B: Working capital is negative. C: Trade

Prices of Calls and Puts Options the shares of Marks & Spencer a) Explain carefully why the November calls are trading at higher prices than the September calls. b) Draw a diag

Working capital cycle for a trade Inventories days (time inventories are held before being sold)   +   Trade receivables days (how long the credit

Q. What are Trade receivable days? Year-end trade receivables/Credit sales (or turnover)] * 365 days This is average length of time taken by customers to pay. A long average

a debit is used to record

The Citilink Bus Company ("Citilink") was established in 2000 to operate a bus service across a city with 1 million inhabitants. The bus company was created by an indigenous busin