Foreign Exchange Rate Fluctuation
1. Your company wants to trade in foreign currency to build
its portfolio. It is a European company and currently holds most of its value
in the Euro. Visit OANDA’s Currency Converter and compare the exchange rates of
various currencies, including the dollar, euro, yen, and renminbi. What is the
rate for these currencies today with respect to the Euro? What was the
euro-dollar exchange rates one year ago? What factors might have caused the
fluctuation in this rate during the year? Develop a 4-6 slide presentation that
outlines your findings and makes recommendations to your company about the best
currency in which to invest.
2. Read the news article “Exchange Rate Restrictions
Lifted in Interbank Market” and discuss on the following questions.
– Why did Belarus decide to abolish the currency trading
restriction?
– What is the effect of this change on the investment of
multinational firms in Belarus?
