Suppose your company is holding shares of Bank A. Your finance team has thoroughly analyzed the Bank financial report and found out that the Bank is holding more Rate Sensitive Assets than Rate Sensitive Liabilities. There is also news from the market reporting that the Centre Bank has just conducted unsterilized interventions in the forex market to keep home currency depreciated to support exports.

(i) Forecast the movement of market interest rates as a result of the Centre Bank forex unsterilized interventions?

(ii) With the above information of the Banks asset-liability structures and the interest rate movement in the market, what will be your investment decision: to hold or to sell the Banks shares. Short explanation (no detailed calculation required).

(iii)In your opinion, what should the Centre Bank do in order to avoid impacts of the above-mentioned forex intervention on the interest rate movement in the market?