For those who asked me about q1, apologies for providing the wrong info:
Please check this out:
http://www.oanda.com/products/bigmac/bigmac.shtml
Think in this way: If
spot rate: domestic currency/Rand = 1
PPP : domestic currency/Rand = 2
common sense says that rand is undervalued (should worth 2, but only 1 in spot rate),
thus DC is overvalued (+) if PPP>spot rate! CHECK THIS!
p/s: I slept for only 2hours+ in the past 24 hours, and going to have a sleep of around 2-3hours tonight. so my vision and brain capture less things now, and sorry if i seem to ignore u.
good luck!
Please check this out:
http://www.oanda.com/products/bigmac/bigmac.shtml
Think in this way: If
spot rate: domestic currency/Rand = 1
PPP : domestic currency/Rand = 2
common sense says that rand is undervalued (should worth 2, but only 1 in spot rate),
thus DC is overvalued (+) if PPP>spot rate! CHECK THIS!
p/s: I slept for only 2hours+ in the past 24 hours, and going to have a sleep of around 2-3hours tonight. so my vision and brain capture less things now, and sorry if i seem to ignore u.
good luck!
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