Suppose you want to infer expected future exchange rates in a less-developed country that has free-market-determined interest
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International Money and Finance
ISBN: 978-0123852472
8th edition
Authors: Michael Melvin, Stefan C. Norrbin
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A forward exchange contract (FEC) is an agreement between two parties to effect a currency transaction, usually involving a currency pair not readily accessible on forex markets. FECs are traded OTC with customizable terms and conditions, many times referencing currencies that are illiquid, blocked, or inconvertibl
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