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Titanium Bank, a bank headquartered in Australia has issued a large volume of loans to corporations in Indonesia. Currently, 35% of loans on Titaniums balance

Titanium Bank, a bank headquartered in Australia has issued a large volume of loans to corporations in Indonesia. Currently, 35% of loans on Titaniums balance sheet are issued in AUD to Indonesian corporations.

  1. Use Titanium Banks situation to describe the relation between foreign exchange risk and credit risk.
  2. What can Titanium Bank do to mitigate the risk(s)? List 2 options.

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