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Ebi International Bank of Japan holds US-designated assets of $475 million and liabilities of $469 million, has purchased US dollars in the currency markets amounting
Ebi International Bank of Japan holds US-designated assets of $475 million and liabilities of $469 million, has purchased US dollars in the currency markets amounting to $75 million, and sold US dollars totaling $50 million. What is Ebis net exposure to risk in fluctuations in the US dollar relative to the banks domestic currency? Under what circumstances could Ebi lose if dollar prices were to change relative to the yen?
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