Calculate the cross rates for the two currencies

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Reference no: EM131955440

Topic: Cross rates of Chinese Renminbi and Swiss Franc against the Euro

You are tasked with preparing a brief report showing application of cross rates for the Chinese Renminbi and the Swiss Franc in terms of the Euro. You are to present a report of no more than 500 words in length. Alternatively, you may present your results as a PowerPoint presentation with no more than 5-10 slides in total.


The 5 year movement of the Chinese Renminbi (CNY) in terms of the Euro (EUR) is shown below in Figure 1. Here the term CNY/EUR can be interpreted to mean 1 Chinese Renminbi is buying x number of Euros. Therefore, at the beginning of 2013, using the diagram below, 1 Chinese Renminbi was buying 0.11990Euros.

2490_figure.jpg

Figure 1:

The 5 year movement of the Swiss Franc (CHF) in terms of the Euro (EUR) is shown in figure 2 below. Here the term CHF/EUR can be interpreted to mean 1 Swiss Franc is buying x number of Euros. Therefore, at the beginning of 2013, using the diagram below, 1 Swiss Franc was buying 0.81229 Euros.

767_figure1.jpg

Figure 2:

The information you present in the report is up to you but there are some questions that must be specifically addressed. These are listed below and must be incorporated into your report/presentation.

a) Comment in no more than 1-2 paragraphs on the exchange rate movement of the two chosen currencies over the past 5 years and make any comments as to possible explanatory causes you believe may have contributed to any noticeable patterns, peaks or troughs in the diagrams shown.

b) Calculate the cross rates for the above two currencies (CNY/CHF) on a yearly basis over the past 5 years using the rates shown below and present your cross rate results in a separate table.

Year

Chinese Renminbi / Euro

Swiss Franc / Euro

 

 

 

End Jan 2013

0.11757

0.80695

End Jan 2014

0.12087

0.81831

End Jan 2015

0.14140

0.95719

End Jan 2016

0.14041

0.90241

End Jan 2017

0.13566

0.93605

c) Using the information from point b) above briefly comment on whether the Swiss Franc and Chinese Renminbi have appreciated or depreciated over this period in terms of the Euro.Justify your analysis with any relevant calculations (here, you can assume that the home currency is the Euro).

d) Plot the movement of the cross rates you calculated on a separate diagram. Clearly label your axes.

e) Comment on the cross rate movement of these two currencies over the past 12 months and make any comments as to possible reasons you believe may have contributed to noticeable patterns, peaks or troughs.

f) You must have a bibliography using the Harvard system of referencing citing any readings, links, urls's, etc. for the materials you used.A suggested number of references is between 4 - 10 references. Harvard referencing information can be found on the USQ Library main site. Note in particular the Web Documents and sites link if you are using internet references.

g) Finally, don't forget that your report should be concise and should be no more than 500 words in length or alternatively no more than 5-10 PowerPoint slides in total.You can present any technical information in appendices to your report if need be.

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Reference no: EM131955440

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Reviews

len1955440

4/24/2018 3:22:50 AM

Finally, don’t forget that your report should be concise and should be no more than 500 words in length or alternatively no more than 5-10 PowerPoint slides in total. You can present any technical information in appendices to your report if need be. Length, conciseness, grammar, spelling and overall presentation / out of 2 marks Word length excluding tables, appendices, calculations not exceeding 20% in total i.e. 500 words +/- 10%. Concise professional presentation. Good grammar and spelling (1 error allowable). Word length excluding tables, appendices, calculations exceeding 20% in total but less than 40% in total. Discussion reasonably concise. 2-3 errors in grammar and spelling. Reasonable presentation. Word length excluding tables, appendices, calculations exceeding 40% in total. Discussion and analysis not concise. More than 3 errors in grammar and spelling. Poor presentation of tables/graphs etc. Total Possible marks /20 marks = /10

len1955440

4/24/2018 3:22:47 AM

Comment on the cross rate movement of these two currencies over the past 12 months and make any comments as to possible reasons you believe may have contributed to noticeable patterns, peaks or troughs. Discussion and concise critical analysis / out of 3 marks Identification of main issues relating to movement of CHF and CNY currencies. Concise and critical discussion. Identify overall pattern with focus on past 12 month cross rate movement Identification of some issues. Concise and reasonable discussion. Partial or incomplete focus on past 12 months Non identification of any issues. No identification of overall pattern, no focus on past 12 months. Not concise and discussion is too generic You must have a bibliography using the Harvard system of referencing citing any readings, links, urls’s, etc. for the materials you used. A suggested number of references is between 4 – 10 references Bibliography (number) provided in correct format

len1955440

4/24/2018 3:22:35 AM

Using the information from point b) above briefly comment on whether the Swiss Franc and Chinese Renminbi have appreciated or depreciated over this period in terms of the Euro. Justify your analysis with any relevant calculations (here, you can assume that the home currency is the Euro). Discussion and use of relevant supporting calculations. / out of 3 marks Correct identification of movement of currencies with respect to Euro as the home currency. Concise critical analysis of results. Relevant and accurate calculations. Minor errors in identification of movement of currencies with respect to Euro as home currency. Concise and reasonable discussionwith 1-2 minor errors in calculations. Major errors in identification of movement of currencies with respect to Euro as home currency. Discussion not concise and/or too generic. No supporting calculations / more than 2 errors in calculations Plot the movement of the cross rates you calculated on a separate diagram. Clearly label your axes. Presentation of diagram.

len1955440

4/24/2018 3:22:20 AM

Comment in no more than 1-2 paragraphs on the exchange rate movement of the two chosen currencies over the past 5 years and make any comments as to possible explanatory causes you believe may have contributed to any noticeable patterns, peaks or troughs in the diagrams shown Discussion of main issues. Concise critical analysis. / out of 6 marks Identification of at least two (2) main issues. Concise and critical discussion Identification of at least one (1) main issue. Concise and reasonable discussion Non identification of any major issues. Not concise and discussion is too generic Calculate the cross rates for the above two currencies (CNY/CHF) on a yearly basis over the past 5 years using the rates shown below and present your cross rate results in a separate table. Calculations and presentation of results. / out of 2 marks Correctly calculate cross rates. Good presentation of results in table. Calculation of cross rates with 1-2 minor errors only. Presentation of results in table reasonable More than 2 errors in cross rate calculations. Table results difficult to read or presented poorly

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