Ebi international bank of japan holds us dollar-denominated


Question: Ebi International Bank of Japan holds U.S. dollar-denominated assets of $416 million and dollar-denominated liabilities of $479 million, has purchased U.S. dollars in the currency markets amounting to $166 million, and sold U.S. dollars totaling $14 mil-lion. What is Ebi's net exposure to risk from fluctuations in the U.S. dollar relative to the bank's domestic currency? Under what circumstances could Ebi lose if dollar prices change relative to the yen?

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