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I want explain with formulas 25. Myanmar had a coup on February 1, 2021. Myanmar's currency is called the kyat, which here will be abbreviated
I want explain with formulas
25. Myanmar had a coup on February 1, 2021. Myanmar's currency is called the kyat, which here will be abbreviated as a k for simplicity. Myanmar before the coup had a pegged exchange rate at $1 = k1,330. By mid-April 2021, the kyat was trading at just below $1 = k1,600.
To simplify here, suppose the XR was fixed at $1 = k1,300 and went to $1 = k1,600. Suppose you are a bank you borrowed $100 from a foreign bank at the initial pegged rate and sold it for kyat. This means you have how many kyat?
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