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What is the expected future exchange rate in pesos

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Reference no: EM132560315

Question 1: The inflation rate in the USA is expected to be 3% and the inflation rate in Mexico is expected to be 7% over the next three years. If the current spot exchange rate is 20 Mexican pesos per dollar, what is the expected future exchange rate in pesos per dollar in three years according to Interest Rate Parity (IRP)?

Reference no: EM132560315

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