Why might covered interest parity fail to hold, International Economics

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Why might covered interest parity fail to hold

Problem

The text points out that covered interest parity holds quite closely for deposits of differing currency denomination issued in a single financial center. Why might covered interest parity fail to hold when deposits issued in different financial centers are compared?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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