Question
On August 8, 2000, Zimbabwe changed the value of the Zim dollar from Z$38/US$ to Z$50/US$. (a) What was the original US dollar value of
On August 8, 2000, Zimbabwe changed the value of the Zim dollar from Z$38/US$ to Z$50/US$.
| (a) | What was the original US dollar value of the Zim dollar (US$/Z$ exchange rate)? What is the new US dollar value of the Zim dollar (US$/Z$ exchange rate)? |
(1 marks) (b) By what percent has the Zim dollar devalued (revalued) relative to the U.S. dollar? (1.5 mark) (c) By what percent has the US dollar appreciated (depreciated) relative to the Zim dollar?
The answer is
(a) Before devaluation: $0.0263; after devaluation: $0.02. (b) -24% (c) + 31.58% Can you show me step by step?
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Global Development Finance External Debt Of Developing Countries 2011
Authors: World Bank
2011Edition
0821386735, 9780821386736
