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What is the expected rr of the peso

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Question - Argentina has an inflation rate of 30% Brazil's inflation rate of 10% Argentine central bank fixed the Brazilian Real (name of currency) at Rn=0.10 peso per Real.

-What is the expected Rr (real exchange) of the peso?

-Is the Argentine peso expected to appreciate or depriciate in real terms to the Real?

-How all of the above may affect the reserves of the Argentine Central Bank?

Reference no: EM133041114

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