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An international corporation located in country A is considering a project in the United States. The currency in country A, say X, has been strengthening
An international corporation located in country A is considering a project in the United States. The currency in country A, say X, has been strengthening relative to the U.S. dollar; specifically, the average devaluation of the U.S. dollar has been 3.2% per year (which is projected to continue). Assume the present exchange rate is 6.8 units of X per U.S. dollar. What is the estimated exchange rate two years from now (i.e. how many units of X per USD)?
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