- This topic has 3 replies, 2 voices, and was last updated 4 years ago by
.
- Posts
Hi Mr Moffat.
Does this imply if parent is based in USA and subsidiary is based in Mexico and
Investment is needed in Mexican peso. But Canadian dollar for example offers lower interest rate compared and hence borrowed for investment?This borrowing could be funded in eurobonds or euroloans ( availing Canadian dollar) but it’s likely that cheaper finance cost would be offset by exchange rate as Canadian dollar would be Stronger.
However if euroloan or eurobond was issued in Mexican peso then the benefit offset factor mentioned above would not exist
I do not know what it is you are asking. What you have stated is correct, but are you referring to a specific question or what?
Yes I wanted to know what I stated is correct or not.
Sorry i didn’t I didn’t make that explicit.
Thank you for assurance
- The topic ‘Finance raised in third currency’ is closed to new replies.