- This topic has 1 reply, 2 voices, and was last updated 1 month ago by .
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Home currency is GBP.
We received in USD.
Logically, we want to sell off our USD to get GBP.
But why did the answer in the book use the buy rate?
Given 3month and 1 year rate.
We want to find the 5th month.
Supposedly, 3month of sell rate + 2/9*(1 year – 3month of sell rate)
But answer use buy rate. Why would we want to buy more USD when our purpose is to sell USD?
There is a net payment of $1,150 because they are importing goods and need to pay for them. Therefore they need to buy $’s.