Determine the cost in cedis of the first transaction

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Makola Forex Bureau quotes bid-ask rates for the Nigerian naira against the Ghana cedi as 74.58/Gh? - 76.45/Gh?. Manu is a trader at Okaishie that has negotiated a deal for the supply of 1,000,000 worth of goods from Nigeria for sale in Ghana. In anticipation of this order of goods from Nigerian, Manu buys 1,000,000 with cedis from Makola Forex Bureau. After the purchase of the naira, Manu is told by the Nigerian supplier that the deal for the supply of the goods is off. Manu returns to Makola Forex Bureau to sell back the naira for cedis (assume that the quoted exchange rate had not changed).

Determine the cost in cedis of the first transaction where Manu buys the 1,000,000 with cedis?

Reference no: EM132412314

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