As one of your first assignments as a new hire on the corporate treasurer's staff of global enterprises, Ltd., you are asked to prepare an exchange rate forecast for Zonolian ecru (ZOE). Specially, you are expected to forecast what the spot rate for the ecru is likely to be at the end of 2011. Selected information on which to base your forecast follows. Be sure to identify any additional bases underlying your forecast and any assumptions.

As one of your first assignments as a new hire on the corporate treasurer's staff of global enterprises, Ltd., you are asked to prepare an exchange rate forecast for Zonolian ecru (ZOE). Specially, you are expected to forecast what the spot rate for the ecru is likely to be at the end of 2011. Selected information on which to base your forecast follows. Be sure to identify any additional bases underlying your forecast and any assumptions. Worberg bank consolidated Balance Sheet as of year-end (000) Visible trade balance (ZOEbn) 2006 7.1 2007 6.5 2008 0.6 Current Account balance (ZOEbn) Foreign direct investment (ZOEbn) Portfolio Flows (ZOEbn) 21.6 9.5 29.7 21.9 9.2 13.4 27.3 12.8 5 Foreign exchange reserves (ZOEbn) Real GDP growth (% change yoy) 15.25 26.2 19.18 5.09 28.14 6.8 2009 27.7 215. 8 11.3 20.6 31.4 6 4.8 Consumer prices (% change yoy) Nominal GDP (ZOEbn) Nominal exchange rate to U.S.$ 51.97 266 6.42 27.7 335 7.6 15.72 412 7.92 18.6 415 9.15 Cash and due from banks Loans Fixed Assets Total 20,000 Deposits 100,00 0 30,000 Owners' equity 150,00 0 50,000 100,00 0 150,00 0 201 2010 1 25.4 213. 8 11.6 9.6 30.9 9 3.7 12.3 2 479 9.55