Question: Given the expected nominal interest rate is 6% and the expected inflation rate is 6.4% in South Africa, while the expected nominal interest rate is

Given the expected nominal interest rate is 6% and the expected inflation rate is 6.4% in South Africa, while the expected nominal interest rate is 2.5% and the expected inflation rate is 8.5% in the U.S in 2022. What do you expect to happen to the real ZAR/USD exchange rate over the next year if the interest parity holds?

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