SCHOOL OF ECONOMICS
University College Cork - National University of Ireland, Cork
EC6003 International Finance
Dr Jun Gao
Continuous Assessment II 2022
Your task is to select two countries, analyse their currencies and write an analytical report. In the report, you shall:
i. Define the base and foreign currencies.
ii. Utilise at least one quantitative method to model, explain and forecast the exchange rate between the base and foreign currencies defined in Part i.
iii. Demonstrate the method(s) you adopt, including – economic theory behind the methodology, assumption(s), advantage(s) and limitation(s).
iv. Explain whether you anticipate the foreign currency to appreciate, depreciate or remain relatively stable in the short-term and long-term.
v. Outline any limitations in your conclusion regarding your anticipation in Part iv.
In your report,
• You may also utilise qualitative assessment on the exchange rate, including reviewing market reports and analysts’ reviews from major financial market participants.
• Forecasts of exchange rates based on both quantitative and qualitative assessment are considered as desired.
• The method(s)/model(s) used to explain and forecast the exchange rate do not necessarily come from this module, though the economic model(s) introduced in EC6003 International Finance are highly encouraged.
• Additional marks may be given if two or more (quantitative) methods are adopted.
Word Limit: The report should be 2,000 words maximum in length. The Executive Summary, the Appendices, References and Footnotes are excluded from the 2,000 words requirement.
A Word Count for the essay, excluding the Executive Summary, the Appendices and References, must be included with the assignment.
There will be a 1% penalty for each 100 words over this 2,000-word limit.
Submission Deadline: Friday 15th April 2022 by 23.00
• Typed and submitted via the Assignments page on Canvas
• Format: double spaced, Times New Roman, font size 12
• Include page numbers on your assignment.
• Contain your name, I.D. number, title, and the accurate word count on the front page.
• Please include the following declaration on your cover page:
“I hereby declare that this work is entirely my own and has not been submitted as part of any other examination or assignment. Any use of the work of others in this assignment is duly acknowledged.”
Marking Criteria for Report:
• Professional Written Communication (consistent and accurate style throughout (spelling and grammar), judicious use of different sections of the essay, etc.)
• Have a logical structure, i.e. does not omit relevant material or include irrelevant material.
• Have the correct format and structure, including page numbering, list of tables, figures, appendices (if relevant) etc.
• Have a comprehensive discussion from the theory perspective.
• Have sufficient evidence and examples - referring publications, curriculum, case studies, data , etc.
• Referencing need to be handled well.
The normal university regulations on plagiarism and collusion apply. Please familiarize yourself with the University’s Policy on plagiarism:
TurnitIn will be enabled on all submissions.
Please put a declaration on the cover sheet of your assignment that the work is entirely your own and has not been submitted as part of any other examination or assignment.
Late Submission of Assignments:
• To be fair to students meeting deadlines, a penalty will be implemented for the late submission of an assignment. Where work is submitted up to and including 7 days late, 10% of the total marks available shall be deducted from the mark achieved. Where work is submitted up to and including 14 days late, 20% of the total marks available shall be deducted from the mark achieved. Work submitted 15 days late or more shall be assigned a zero mark.
• Please note the following: Saturday and Sunday count as 2 days.
• Permission for an Extension is only granted in exceptional circumstances.