The following exchange rates have been obtained from the official website of Westpac Banking Corporation ( All
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Question:
The following exchange rates have been obtained from the official website of Westpac Banking Corporation (All Rates are in term of foreign currency units to one unit of Australian dollar).
Country name
Code
April 1, 2019
March 31, 2020
BD
ASK
Mid
BID
ASK
MID
USA
USD
0.7483
0.6745
0.7114
0.6481
0.5859
0.6170
United Kingdom
GBP
0.5720
0.5189
0.5455
0.5235
0.4763
0.4999
South Africa
ZAR
10.6382
9.6607
10.1495
11.6012
10.4912
11.0462
Norway
NOK
6.3986
5.8055
6.10205
6.8145
6.1629
6.4887
Fiji
FJD
1.6064
1.4192
1.5128
1.5022
1.3483
1.4253
Japan
JPY
82.8200
74.8800
78.8500
70.0800
63.5500
66.8150
Sources:https://www.westpac.com.au/personal-banking/services/historical-rates/
Required:
- Differentiate the manage foreign exchange rate system from a floating rate system.(Points 03)
- Has AUD depreciated/appreciated against GBP and NOK? Use the middle exchange rates to estimate the foreign exchange rate change during the year ended as at 31stMarch 2020.(Points 03)
- Explain how the recorded exchange rate changes in GBP and NOK during the year ended 31stMarch 2020 in could affect to the Australian balance of payments between two countries in the coming year.(Points 04)
- List four factors which can affect the bid and ask spreads in different currencies.(Points 02)
- Estimate the bid and ask spreads for USD and JPY at 31stMarch 2020.(Points 01)
- Estimate the conversion value of the following transactions using the exchange rates as at 31stMarch 2020.(Points 02)
- USD100,000 advance payment to be made for a supplier in New York
- FJD value of AUD2,525.00 you expect to use for your forthcoming travel to in Fuji Islands.
Related Book For
Advanced Accounting
ISBN: 978-0077431808
10th edition
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
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