Rindane holds a dollar account: opening balance 200,000 USD (rate 0.9); customer receipt of 150,000 USD (spot rate 0.92); supplier payment of 100,000 USD (spot rate 0.95); closing rate 0.88 (rates in EUR per 1 USD). Compute the closing balance in euros and the exchange effect for the period.
- Opening balance in USD
- 200,000
- Opening rate
- 0.9
- Receipt in USD
- 150,000
- Rate on receipt
- 0.92
- Payment in USD
- 100,000
- Rate on payment
- 0.95
- Closing rate
- 0.88