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Assume that as of 1 st March 2 0 2 4 , the spot exchange rate between the Brazilian real and the US dollar is

Assume that as of 1st March 2024, the spot exchange rate between the Brazilian real and the US dollar is BRL $1. The consensus forecast for the US and Brazil inflation rates for the next one-year period is 2.6% and 20.0%, respectively. Based on the Purchasing Power Parity (PPP), what would you forecast the exchange rate to be at 1st March, 2025?

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