There are 2 countries:
- Country A Lending Rate is 4%, in a LR, interest rate is expected to remain constant
- Country B Lending Rate is 1% in Year 1 Q1, and there is persistent pressure to further depreciate the currency and interest rates in the following year. Assuming further depreciation of currency is expected for 2 years.
So if i reside in Country A, and I borrow a loan in Country B currency at floating rate at Year 1 Q1.
After 2 years, will I actually gain from this transaction? Will I be able to "save money"?