Business, 11.12.2019 03:31, ana2896

Assume that the current exchange rate between $ and russian ruble is 30rb/$. the russian central bank announces that ruble will not get weaker than 40rb/$ during the next year. assume that one-year ruble interest rate is 10% and one-year $ interest rate is 5%. do you find the central bank’s announcement credible? explain. (hint: what does uncovered interest parity (uip) suggest for the future spot rate? ) (show your calculations! )

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Assume that the current exchange rate between $ and russian ruble is 30rb/$. the russian central ban...