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In: Finance

You work as a manager in a reputed bank in the capital Nairobi. One of your...

You work as a manager in a reputed bank in the capital Nairobi. One of your good customers, Mr. Uweni receives and makes payments in foreign currency. In a cool Wednesday morning, you have; through swift, received various transfers on his behalf as detailed below:

PAYMENTS                                                                               RECEIPTS

TZ SH       8,600,000            Uganda Shillings (UGS)   10,300,900

Euro              8,900              Egyptian pound (EP)                                  72,600

JPY        1,800,000              Kuwait Dinar (KD)                                       9,100

US Dollars 6,800                 Qatar Riyal (QR)                                          50,900

Your bank’s rate board today shows the following spot rates. (KSH = Kenyan Shillings)

USD/KSH 101.890      101.245     KSH/TZS   22.97     23.112

EURO/KSH 114.682   115.742     KSH/UGS     36.550   36.952

1JPY/KSH 0.9200    0.9218

USD/EP     8.270        8.871

USD/KD   0.3890    0.4210

USD/QR   7.995   8.823

REQUIRED

Determine the net amount to be credited or debited to Mr Uweni’s account. Include exchange commission of 1/2 %, Maximum KSH 10,000

Solutions

Expert Solution

Please note that the bank charges in the case of Kuwait dinar exceeds 10000 and hence it has been rounded to 10,000 as instructed in the question

jeff jeffy answered 2 years ago
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