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IMPACT OF EXCHANGE RATE ON THE NIGERIAS BALANCE OF PAYMENTBYOKEKE, ALEXIS ISIOMA. G.U14/MSS/ECO/073DEPARTMENT OF ECONOMICS,FACULTY OF MANAGEMENT AND SOCIAL SCIENCESUGWUOMUNIKE, ENUGUJULY, 2018TITLE
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How to fill out impact of exchange rate

01
Step 1: Determine the base currency and the quote currency for the exchange rate calculation.
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Step 2: Identify the exchange rate and its direction (appreciation or depreciation) with respect to the base currency.
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Step 3: Calculate the percentage change in the exchange rate by dividing the difference between the new rate and the initial rate by the initial rate, and multiplying by 100.
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Step 4: Analyze the impact of the exchange rate change on various aspects, such as trade balance, inflation, interest rates, and economic growth.
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Step 5: Interpret the impact of the exchange rate change and make informed decisions based on the analysis.

Who needs impact of exchange rate?

01
Importers and exporters: They need to understand the impact of exchange rate fluctuations on the cost of imported goods and exported products.
02
International travelers: They need to consider the exchange rate when converting their currency to the local currency in a foreign country.
03
Multinational corporations: They need to assess the impact of exchange rate changes on their international operations and profits.
04
Investors: They need to evaluate the potential returns and risks of investing in foreign assets based on exchange rate movements.
05
Government policymakers: They need to monitor and manage exchange rate fluctuations to ensure economic stability and competitiveness.

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The impact of exchange rate refers to how fluctuations in currency values affect international trade, investment returns, and the overall economy of a country.
Businesses engaged in foreign transactions, investors holding assets in foreign currencies, and individuals or entities that report financial statements involving foreign activities are typically required to file the impact of exchange rate.
To fill out the impact of exchange rate, organizations should assess their foreign currency transactions, convert the values to their reporting currency using applicable exchange rates, and complete the necessary reporting forms provided by the regulatory body.
The purpose of reporting the impact of exchange rate is to provide transparency regarding the effect of currency fluctuations on financial results and to inform stakeholders of potential risks associated with exchange rate volatility.
Companies must report the effects of exchange rate changes on sales, revenues, costs, and profits. They should also disclose the methods used for calculating exchange rates and any hedging activities undertaken.
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