Over the past month, the Swiss Franc (CHF) has depreciated 12 percent against pound sterling (GBP). How much has the pound sterling appreciated against the Swiss Franc? A. 12% B. Less than 12% C. More than 12%
The appreciation of sterling against the Swiss franc is simply the inverse of the 12% depreciation of the Swiss franc against Sterling: [1/(1 - 0.12)] - 1 = (1/0.88) - 1 = 0.1364, or 13.64%.
