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Valuation effects on net foreign assets We consider two fictitious economies A and B with the following balance sheet on foreign assets and liabilities. Assets and liabilities are expressed in the countries domestic currency and their currency composition is written in parenthesis. For the whole exercise, GDP in domestic currency is constant in both countries. Valuation effects on net foreign assets We consider two fictitious economies A and B with the following balance sheet on foreign assets and liabilities. Assets and liabilities are expressed in the countries domestic currency and their currency composition is written in parenthesis. For the whole exercise, GDP in domestic currency is constant in both countries