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c. Zambia recently concluded an Extended Credit Facility Arrangement with the International Monetary Fund aimed at providing Balance of payment support. Using your knowledge of

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c. Zambia recently concluded an Extended Credit Facility Arrangement with the International Monetary Fund aimed at providing Balance of payment support. Using your knowledge of the operations of the international monetary system as well as the operations of foreign exchange markets, provide an assessment of how the Extended Credit Facility Arrangement would affect the foreign exchange markets and support the Balance of payments of the country. [5 MARKS]

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