What do you expect would happen to the currency

Reference no: EM133336954

Question: Whether this is good news depends on whom you ask. Let's explore this situation. a. First, think about an oil-exporting country that fixes its currency to the US dollar. Assuming that global oil prices fell due to demand-side factors, what do you expect would happen to the currency of the oil-exporting currency had it not fixed its currency? If it fixes the currency by direct intervention in the foreign exchange market, what would it buy? What would it sell?

Reference no: EM133336954

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