QUESTION ONE Chipasha Masafwa, owner of the Computing Computers Company, is concerned about the value of the South African Rand over time because his firm receives Rands as payment for Computers exported to the South Africa. He recently read that the Central Bank of South Africa (the central bank of the South Africa) is likely to intervene directly in the foreign exchange market by flooding the market with South African Rands. i. ii. Forecast whether the South African Rand will weaken or strengthen based on the information provided and explain the reasoning. (5 Marks) How would the performance of the Sports Exports Company be affected by the Bank of England's policy of flooding the foreign exchange market with South African Rands (assuming that it does not hedge its exchange rate risk)? (5 Marks)