Illustrate what would you expect brl-usd to do

Reference no: EM1330191

Important information about Relative PPP

For the coming year, inflation in Brazil is expected to be 15% while the US inflation is expected to be 3%. Spot Brazil Real is 2.86BRL/USD. Based on relative PPP, what would you expect BRL/USD to do and by how much in one year?

Reference no: EM1330191

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