If a Citibank dealer expects the Swiss franc to appreciate against the U.S.dollar,she will attempt to lower both bid and offer rates for the franc,attempting to persuade other dealers to buy francs from Citibank and dissuade other dealers from selling francs to Citibank.

Question

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If the Citibank dealer expects the Swiss franc to appreciate against the U.S. dollar, she will attempt to raise both bid and offer rates for the franc to attract more buyers and discourage sellers. Lowering the rates would have the opposite effect.

If a Citibank Dealer Expects the Swiss Franc to Appreciate