Paul McBride asked:
A couple of year s ago. I took out an auto loan and the lender in the country I am living in indexed the loadn against a basket of currencies. Everything seemed to be going fine until recently when the currency of the country I am living in started to depreciate against other currencies. I notice that my new principal took a hit in the upward direct by approximately the same percentage as the decline in the local currency so I now owe more than I did a year ago. If my currency here recovers to previous levels will the principal also go down?
A couple of year s ago. I took out an auto loan and the lender in the country I am living in indexed the loadn against a basket of currencies. Everything seemed to be going fine until recently when the currency of the country I am living in started to depreciate against other currencies. I notice that my new principal took a hit in the upward direct by approximately the same percentage as the decline in the local currency so I now owe more than I did a year ago. If my currency here recovers to previous levels will the principal also go down?
