On September 1^st, Shiru, a customer has just notified her bank that she has entered into a contract to buy 20,000 air cleaners from UK at 2 each CIF Mombasa and that the payment will be made immediately. She also signed a contract to sell the air cleaners to a Zambian buyer for USD 75,000 for settlement during November.

Shiru instructs his bank to pay the Sterling immediately by SWIFT and to buy the dollars forward. On September 1^st, the rates for Sterling and USD are as follows

GBP USD

SPOT 143.7833-144.1889 79.2778-79.4778

One month forward 0.09-0.03 disc 0.150-0.05 disc

Two months forward 0.14-0.08 disc 0.45-0.35 disc

Three months forward 0.35-0.25 disc 0.75-0.65 disc

The banks SWIFT commission charged is ¹/8%

The exchange commission charged is % with a maximum of KSH 5000.

REQUIRED

Determine the amount that will be debited and credited to Roses account (20 Marks)