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3. As of 1 October 2021, the exchange rate between the Brazilian real and the US dollar is BRL5.54/USD. The consensus forecast for annual United

3. As of 1 October 2021, the exchange rate between the Brazilian real and the US dollar is BRL5.54/USD. The consensus forecast for annual United States and Brazil inflation rates for the next 12 months period is 2.6% and 20.0%, respectively. What would you forecast the exchange rate to be at around 1 October 2022, i.e. in one-years' time? (7 marks)

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