The Australian dollar has experienced a stunning fall in value over the past 12 months. On the 1 July 2014, the Aus dollar reached a 2014 peak of 0.949 US dollars and has been declining ever since, closing at 0.765 US dollars on the 10 Feb 2015. That is a 24% fall in 8 months. Whilst there are losers in importers, overseas holidays and internet shoppers who buy from overseas websites, there are also winners, and international students are one of them.
Let’s take a look at why. Whilst the Australian dollar has fallen in value against major currencies like USD, EUR and GBP, currencies from emerging countries such as India, China, Philippines and Indonesia has appreciated against the ailing Aussie dollar, improving their value and increasing their purchasing power in Australia. The Australian dollar is seen as a commodity currency, so as the prices of our natural resources fall, so does the perceived value of our currency and its global purchasing power.
The Chinese yuan has appreciated 23% against the Aus dollar in the past year. A $30,000 degree used to cost 176,533 yuan. It will now cost 143,255 yuan.
The Indian rupee has appreciated 22% against the Aus dollar in the past year. A $30,000 degree used to cost 1,722,476 rupees. It will now cost 1,415,390 rupees.
The Indonesian rupiah has appreciated 18% against the Aus dollar in the past year. A $30,000 degree used to cost 341,765,178 rupiah. It will now cost 289,125,690 rupiah.
Australian universities will do well to take advantage of the opportunity for overseas students to study in Australia. Tertiary education is a significant export service for Australia and international students should be strongly encouraged to study here as their appreciated currencies will give them greater choice to study in many overseas destinations.
FX Source: www.xe.com – 12 Feb 2015.