In one country, the current account deficit is at the level of 10 billion dollars. This deficit will increase by $2 bill

[answerhappygod]

In one country, the current account deficit is at the level of
10 billion dollars. This deficit will increase by $2 billion every
year in the next five years. This country meets only half of the
deficit from its financial account (FDI and other short term
portfolio investments) each year. The central bank's foreign
currency reserves are $5 billion and will increase by one billion a
year in the next five years. If the country applies a fixed
exchange regime, what would be your expectation for the country's
foreign exchange market the next five years?