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Suppose Namibia only trades with the countries given below. Partner Trade volume ($000's) 1 South Africa 4,011,950 2 United Kingdom 1,056,915 3 Netherlands 223,960 4

Suppose Namibia only trades with the countries given below.

Partner

Trade volume

($000's)

1

South Africa

4,011,950

2

United

Kingdom

1,056,915

3

Netherlands

223,960

4

China

3,212,700

5

United States

320,370

CPI

(2010=100)

Country

Name

Namibia

Netherlands

South Africa

United Kingdom

United States

China

2015

128.9048

109.1832185

130.2686073

110.9580174

108.695722

114.9221

2016

137.5772

109.5289654

138.8593066

112.0769373

110.0670089

117.2206

2017

146.0299

111.0420628

146.0537215

114.9435916

112.4115573

119.0881

2018

152.2925

112.9336621

152.6328245

117.5790642

115.1573032

121.5589

2019

157.9684

115.9079949

158.9279375

119.6227113

117.2441955

125.0832

Bilateral exchange rate for Namibian dollar

USD

GBP

Euro

Yuan

2015

12.67216

19.39069

14.07145

2.018231

2016

14.66225

19.74458

16.21643

2.205355

2017

13.30542

17.12451

14.99579

1.968538

2018

13.15025

17.58968

15.7284

1.995214

2019

14.4368

18.42559

16.16754

2.090446

Use the given information to answer the following questions:

  1. Calculate the nominal exchange rate index for each currency. (5marks)
  2. Calculate the PPP implied exchange rates for all currencies. (5 marks)
  3. Calculate the nominal effective exchange rate index for the Namibian dollar. (5 marks)
  4. Calculate the bilateral real exchange rate for each currency. (5 marks)
  5. Calculate the real effective exchange rate index for the Namibian dollar. (5 marks)

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