The prediction of the exchange rate movements in the future. Best interest rate compensation is useless and worst. The evaluation found that most said the interest rate currencies to decline over time. Also known as the chances of borrowers in the currency will benefit not just from the lower interest on their loans only. But in addition, the ability to pay these loans in foreign currencies rather being in the future. An analysis based on a relatively short term interest rates and movements of the corresponding currency. The result is more consistent with the UIP may be interpreted as a failure of economic.
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