Denominated in dollars and the remainder in pesos

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Home's currency is the peso and trades at 2 peso per dollar. Home has external assets of $100 billion, all of which are denominated in dollars. It has external liabilities of $250 billion, 50% of which are denominated in dollars and the remainder in pesos. What happens to net wealth (in peso) if the peso depreciates to 2.5 peso per dollar?

Reference no: EM132401163

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