How Does Interest Rate Parity (IRP) Work?
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YouTubeSimple Explain
How Does Interest Rate Parity (IRP) Work?
Today, we talked about interest rate parity (IRP), a theory that states the interest rate differential between two countries is equal to the differential between the forward exchange rate and the spot exchange rate. This concept is crucial in understanding the relationship between interest rates and currency exchange rates. IRP is the ...
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