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Foreign Exchange Rate Fluctuation

1. Your company wants to trade in foreign currency to build its portfolio. It is a European company and currently holds most of its value in the Euro. Visit OANDA's Currency Converter and compare the exchange rates of various currencies, including the dollar, euro, yen, and renminbi. What is the rate for these currencies today with respect to the Euro? What was the euro-dollar exchange rates one year ago? What factors might have caused the fluctuation in this rate during the year? Develop a 4-6 slide presentation that outlines your findings and makes recommendations to your company about the best currency in which to invest.

2. Read the news article "Exchange Rate Restrictions Lifted in Interbank Market" and discuss on the following questions.
- Why did Belarus decide to abolish the currency trading restriction?
- What is the effect of this change on the investment of multinational firms in Belarus?

Solution Preview

Please see the attachment.

Belarus has decided to abolish currency trading restrictions so that the country's exchange market is restored to normal operation and transparency is increased of how currency exchanges rates are set. According to Belarus, market participants are feeling uncertain regarding the problems in the domestic market and the exchange rates in different segments of the exchange ...

Solution Summary

Foreign currency rate fluctuation is explained in a structured manner in this response. The answer includes references used.

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