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Could you please answer all of these question please. Thank you so much, thumb up for sure . :) During the currency crisis of September
Could you please answer all of these question please. Thank you so much, thumb up for sure . :)
During the currency crisis of September 1992, the Bank of England bortowed DM 33 billion from the Bundesbank when a pound was worth DM 278 or $1.912. it sold these DM in the foreign exchange market for pounds in a futile attempt to prevent a devaluation of the pound it repaid these DM at the post crisis rate of DM 2.50.f.1. By then, the dollar " pound exchange rate was $1. 782 : C1. NOTE: Bundesbank is the central bonk of Bermany. DM (deutsche mark) was the official currency of West Germany. A. By what percentage had the pound sterling devalued in the interim against the Deutsche mark? Against the dollar? (2+2=4 marks) B. What was the cost of intervention to the Bank of England in pounds? ( 1 mark) Show calculations as required
Could you please answer all of these question please. Thank you so much, thumb up for sure . :)
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