Strong Australian Dollar Raises Concerns
With all the things happening in Australia, business visa holders are closely watching the latest developments here. With the country being one of the fastest growing economies in the world today, changes in here would certainly have a big effect. Thus, it is not surprising that observers from both in and out of the country are closely looking at the situation.
One of the recent events that a lot of economic observers are talking nowadays is the strength being shown by the Australian dollar against other currencies in the last few months. It can be recalled that, since August of this year, the Australian dollar was able to get substantial gains in the foreign exchange market. In fact, one of its biggest gains was in September, where it went almost at par with the US dollar in the trading scene.
Many observers are very welcoming of the current trend. According to them, this is a clear indicator that the country is well on the way to recovery after last year's financial crisis. It should be noted that Australia was among the countries that were significantly hit by the crisis. However, observers said that because of the mitigation plan the the Australian government has implemented, the country was able to survive the onslaught of the crisis.
In fact, a lot of economic analysts agree that Australia actually came out much stronger after the crisis. They pointed out the growing strength of the Australian dollar as proof. According to them, the growing strength of the Aussie dollar is an indication that more and more investors are becoming confident of the country's market once again.
However, some experts warned that the public must not get overexcited with the strength of the Australian dollar just yet. According to them, while the event does sound good, it also has negative consequences that come along with it. One thing they have pointed out is that a rising dollar could also cause product prices to go up, because of the greater value.
One of the sectors that they have given as example is the foreign education industry. Here, the increase in dollar value have also increased tuition fee rates. This, in turn, has discourage many foreign students from enrolling and opted to move to other countries. This has resulted in the slump in student numbers that the industry is currently experiencing.
