$4$

Omni Advisors, an international pension fund manager, uses the concepts of purchasing power parity $($PPP$)$ and the International Fisher Effect $($IFE$)$ to forecast spot exchange rates. Omni gathers the financial information as follows:

$\backslash$table$[[$Base price level,$100],[$Current U$.$S$.$ price level,$105],[$Current South African price level,$111],[$Base rand spot exchange rate,$$0\mathrm{.}195$