Currency Depreciation

1
Currency Depreciation

• 1 1.60

100
buys
160 imports
Next day the depreciates
1 1.20
100
buys
120 imports
So how much in will 160 imports now cost???
133
Formula 160 / 1.2
In this situation who gains? Who
suffers???
2
Currency Appreciation
1 1.60
100
buys
160 imports
Next day the appreciates
1 2.00
100
buys
200 imports
So how much in will 160 imports now cost???
80
Formula 160 / 2.0
In this situation who gains? Who
suffers???