Country X conducts trade with only two countries: Nigeria and Malaysia. 80% of Country X’s trade is carried out with Nigeria, while 20% is with Malaysia. The starting value of the trade-weighted exchange rate index is 100. Country X’s currency increases in value by 10% against the Nigerian Naira. Country X’s currency also increases in value by 50% against the Malaysian Ringgit. What will be the value of Country X’s new trade-weighted exchange rate index?
- A115
- B118
- C130
- D160