Suppose that Retrojo Inc. is a U.S. based MNC that will need to purchase F\$1.20 million (Fijian dollars, F\$) worth of imports from Hil in 90 days. Currently, the spot rate for the Fijian dollar is $0.72 per F\$. Suppose that Retrojo negotiates a forward contract with a bank, which commits it to purchasing Filian dollars at F\$1,200,000.00 at $0.72 per Fijian dollar in 90 days. Thus, Retrojo knows with certainty that it will need F$1,200,000.00$0.72 per Fijian dollars = $864,000.00 for this exchange. If the Fijlan dollar depreciates over this time period, to $0.59 per Filian dollar, then only (u.S. dollars) would be needed to exchange for the required F$1,200,000.00