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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Purchasing Power parity
Hi,
just to make it clear to myself, is PPP a way to predict future spot exchange rates by using inflation rates of the two countries taken into consideration and that the rates of currency conversion will change to keep the purchasing power equivalent?
Thank you for your help
BR
Salvatore
Correct!
(Have you watched the free lectures on this? The lectures are a complete free course for Paper F9 and cover everything needed to be able to pass the exam well.)
