The spot exchange rate for United States dollars per United Kingdom pound (CNY/USD) is 6.88. If 60-day interest rates are 1.89% in the United States and 4.71% in China, and interest rate parity holds, the 60-day forward CNY/USD exchange rate should be: 6.9122 CNY/USD 6.8753 CNY/USD 6.9289 CNY/USD
Added by Blanca P.
Step 1
Step 1: Calculate the forward exchange rate using interest rate parity formula: Forward exchange rate = Spot exchange rate * (1 + foreign interest rate) / (1 + domestic interest rate) Show more…
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