Question

Foreign currency exposure - Within a multinational corporation, what are some of the expected future trend of the exchange rate between the Eastern Caribbean islands and Canada?

Answer 1

Answer:-

Introduction of foreign currency exposure:-

Foreign exchange exposure refers to the risk a company undertakes when making financial transactions in foreign currencies. All currencies can experience periods of high volatility which can adversely affect profit margins if suitable strategies are not in place to protect cash flow from sudden currency fluctuations.

Some of the expected future trend of the exchange rate between the Eastern Caribbean islands and Canada are:-

Exchange rates of eastern Caribbean islands:-

The Eastern Caribbean dollar (symbol: $; code: XCD) is the currency of all seven full members and one associate member of the Organisation of Eastern Caribbean States (OECS). The successor to the British West Indies dollar, it has existed since 1965, and it is normally abbreviated with the dollar sign $ or, alternatively, EC$ to distinguish it from other dollar-denominated currencies. The EC$ is subdivided into 100 cents. It has been pegged to the United States dollar since 7 July 1976, at the exchange rate of US$1 = EC$2.70

Recent decades have witnessed fundamental and lasting changes in the economic structures of the countries of the Caribbean. Sugar and bananas, which were the backbones of many economies, have been replaced by tourism as the dominant sector. Indeed, as of end-2006, agriculture as whole accounted for only about 6 percent of GDP in the Eastern Caribbean Currency Union (ECCU), while tourism accounted for over 25 percent of GDP and 75 percent of total export earnings. This strongly suggests that the economies of the eastern Caribbean, and their currencies in particular, have become tourism-dominated.

Canadian dollar's

The Canadian dollar's highest ever exchange rate was US$2.78, reached on July 11, 1864 after the United States had temporarily abandoned the gold standard

Accounting for approximately 2% of all global reserves, the Canadian dollar is the fifth most held reserve currency in the world, behind the U.S. dollar, the euro, the yen and the pound sterling.

The Canadian dollar is popular with central banks because of Canada's relative economic soundness, the Canadian government's strong sovereign position, and the stability of the country's legal and political systems

East Caribbean Dollar (XCD) to Canadian Dollar (CAD) exchange rate history

This is the East Caribbean Dollar (XCD) to Canadian Dollar (CAD) exchange rate history summary. detailing 180 days of XCD CAD historical data from Monday 14/10/2019 to Thursday 9/04/2020

Highest: 0.53625 CAD on 19 Mar 2020.

Average: 0.49438 CAD over this period.

Lowest: 0.47973 CAD on 06 Jan 2020.

CAD to XCD Forecast, Canadian Dollar to Caribbean Dollar Currency Exchange Rate Prediction:

CAD to XCD Forex pair is a bad long-term (1-year) investment*. "Canadian Dollar / East Caribbean Dollar" exchange rate predictions are updated every 5 minutes with latest Forex (Foreign Exchange) rates by smart technical market analysis. Q&A about CAD to XCD Fx forecast.

As per predict future values with technical analysis for wide selection of Forex (Foreign Exchange) pairs like CAD to XCD . If you are looking for foreign exchange rates with good return, CAD to XCD can be a bad, high-risk 1-year investment option. CAD/XCD rate equal to 1.937 at 2020-04-11, but your current investment may be devalued in the future.