Question: b. Based on the reported interest rates, what would be the one-year forecast of the Turkish lira (Assume that current spot rate is USD/TRY

b. Based on the reported interest rates, what would be the one-year forecast of the Turkish lira (Assume that current spot rate is USD/TRY 1.5300)? Is the change in the exchange rate related to interest rate differentials? Explain.

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Certainly based on the reported interest rates we can make a forecast of the Turkish Lira TRY exchange rate against the US Dollar USD using a simplifi... View full answer

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