Suppose Namibia only trades with the countries given below.   Partner Trade volume ($000's) 1 South Africa 4,011,950 2 United Kingdom 1,056,915 3 Netherlands 223,960 4 China 3,212,700 5 United States 320,370       CPI (2010=100)       Country Name Namibia Netherlands South Africa United Kingdom United States China 2015 128.9048 109.1832185 130.2686073 110.9580174 108.695722 114.9221 2016 137.5772 109.5289654 138.8593066 112.0769373 110.0670089 117.2206 2017 146.0299 111.0420628 146.0537215 114.9435916 112.4115573 119.0881 2018 152.2925 112.9336621 152.6328245 117.5790642 115.1573032 121.5589 2019 157.9684 115.9079949 158.9279375 119.6227113 117.2441955 125.0832

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Suppose Namibia only trades with the countries given below.

 

Partner

Trade volume

($000's)

1

South Africa

4,011,950

2

United

Kingdom

1,056,915

3

Netherlands

223,960

4

China

3,212,700

5

United States

320,370

     

CPI

(2010=100)

     

Country

Name

Namibia

Netherlands

South Africa

United Kingdom

United States

China

2015

128.9048

109.1832185

130.2686073

110.9580174

108.695722

114.9221

2016

137.5772

109.5289654

138.8593066

112.0769373

110.0670089

117.2206

2017

146.0299

111.0420628

146.0537215

114.9435916

112.4115573

119.0881

2018

152.2925

112.9336621

152.6328245

117.5790642

115.1573032

121.5589

2019

157.9684

115.9079949

158.9279375

119.6227113

117.2441955

125.0832

Bilateral exchange rate for Namibian dollar

 

USD

GBP

Euro

Yuan

2015

12.67216

19.39069

14.07145

2.018231

2016

14.66225

19.74458

16.21643

2.205355

2017

13.30542

17.12451

14.99579

1.968538

2018

13.15025

17.58968

15.7284

1.995214

2019

14.4368

18.42559

16.16754

2.090446

Use the given information to answer the following questions:

  1. Calculate the nominal exchange rate index for each currency. 
  2. Calculate the PPP implied exchange rates for all currencies. 
  3. Calculate the nominal effective exchange rate index for the Namibian dollar. 
  4. Calculate the bilateral real exchange rate for each currency. 
  5. Calculate the real effective exchange rate index for the Namibian dollar. 
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