International Finance

QUESTION 2 20 points Save Answer In the days following the outbreak of the war in Ukraine, the Rouble suffered a 50% devaluation against all currencies. Over the last 2 months, the Russian central bank has acted and the Rouble has recovered much of this loss. Explain, in detail and based upon the material covered in this subject on International Finance, in your own words (in no more than 200 words): The three schools of thought that explain exchange rates The purpose of intervention How intervention is implemented . The methods that may be employed to forecast the Rouble and the reliability of these methods The risks associated with trading foreign exchange with Russian banks faced by international banks . Given the controls in place on the Rouble, how international banks may trade the Rouble without restrictions How FX settlement risks are managed today For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). QUESTION 2 20 points Save Answer In the days following the outbreak of the war in Ukraine, the Rouble suffered a 50% devaluation against all currencies. Over the last 2 months, the Russian central bank has acted and the Rouble has recovered much of this loss. Explain, in detail and based upon the material covered in this subject on International Finance, in your own words (in no more than 200 words): The three schools of thought that explain exchange rates The purpose of intervention How intervention is implemented . The methods that may be employed to forecast the Rouble and the reliability of these methods The risks associated with trading foreign exchange with Russian banks faced by international banks . Given the controls in place on the Rouble, how international banks may trade the Rouble without restrictions How FX settlement risks are managed today For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)