Question
1.Choose a foreign currency which is a close peer of Australian currency. In this regard you can use any of the G20 countries' currency. Discuss
1.Choose a foreign currency which is a close peer of Australian currency. In this regard you can use any of the G20 countries' currency. Discuss and access the various components and instruments of the currency, financial and money markets in the context of a firm operating globally.
2.Conduct an analysis of the chosen currency's current market value given current global events and the recent period of high stress in world economies and markets. Assess current trends in the overall financial environment to relate the operational, financing and investment impacts. Use information sourced from credible sources for research.
3.Is the selected currency performing better or worse than Australian dollar in terms of current global market conditions and future economic prospects? Discuss your answer fully and provide evidence of credible research as this is a complex problem.
4.How are current market conditions for your chosen foreign currency similar or different from the GFC, in terms of the response of stock markets and financial institutions? Discuss your answer fully and provide evidence of credible research using your technical skills from the unit.
5.What are the key measures taken by the central banks and governments to stabilise the currency right now? Which country is performing better in this regard? Elaborate your answer.
6.From your answer of part 5, what are the long-term economic and financial impacts of the measures taken by the central banks and governments of the respective countries? Critically reflect on processes and assumptions.
7.Construct capital investment plan including a hedging strategy for MNCs operating into these countries
8.For the conclusion, suggest regulatory measures arising from previous discussion of our problem that the respective governments of the two countries can take to better safeguard their currencies for future crises.
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