Question: The current spot rate between the US dollar and the South African rand ( ZAR ) is 1 3 . 9 2 ZAR = 1

The current spot rate between the US dollar and the South African rand (ZAR) is
13.92 ZAR =1 USD. Inflation in the US is 1% and the real interest rate in the US is 2%. The nominal interest rate on securities of similar risk and maturity in South Africa is 7%.The Fisher Effect would imply that
13.92 ZAR =1 USD. Inflation in the US is 1% and the real interest rate in the US is 2%. The nominal interest rate on securities of similar risk and maturity in South Africa is 7%.The Fisher Effect would imply that

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