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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › current forward exchange rate
how to calculate current six month forward exchange rate?
You use the formula on the formula sheet!
It is the interest rate parity formula – the one at the bottom of the formula page that starts with Fo.
Interest rates are always quoted in the exam (and in real life) on an annual basis, and so the six monthly rates are the yearly rates divided by 2.
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