Omni Advisors, an international pension fund manager, uses the concepts of purchasing power parity (PPP) and the International Fisher Effect (IFE) to forecast spot exchange rates. Omni gathers the financial information as follows:

Base price level		100
Current U.S. price level		105
Current South African price level		111
Base rand spot exchange rate	$	0.195
Current rand spot exchange rate	$	0.178
Expected annual U.S. inflation		7	%
Expected annual South African inflation		5	%
Expected U.S. one-year interest rate		10	%
Expected South African one-year interest rate		8	%

Calculate the following exchange rates (ZAR and USD refer to the South African rand and U.S. dollar, respectively):

a. The current ZAR spot rate in USD that would have been forecast by PPP. (Do not round intermediate calculations. Round your answer to 4 decimal places.)

b. Using the IFE, the expected ZAR spot rate in USD one year from now. (Do not round intermediate calculations. Round your answer to 4 decimal places.)