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Post by mangomoney on Feb 1, 2016 13:46:55 GMT 7
Aussie's Plunge to Seven-Year Low Is Turning Out to Be a BlessingGDP seen growing 2.6% in 2016 as exchange rate hits fair value Central banks in Europe, Asia face pressure from currency rate The Australian dollar’s plunge to a seven-year low is turning out to be a blessing as China steers its slowing economy away from the heavy industries that helped fuel a mining boom Down Under. It’s more than four years since a record-high Aussie threatened to destroy manufacturing and hamstring the economy. Instead, the currency’s steepest three-year slide since it was floated in 1983 is working its magic -- a weaker local dollar has spurred record tourist arrivals and education income. And it’s tempered the drag from iron ore’s plunge to unprecedented lows while making the nation home to the world’s lowest-cost miners. Australia stands out in getting the currency boost it needs at a time when economies the world over are grappling with exchange rates considered undesirable. The Aussie is in line with economic fundamentals, after being 25 percent or more overvalued in 2013. China is struggling to curb yuan declines and Saudi Arabia is burning through reserves to maintain its peg to a strengthening greenback. Policy makers in Europe and Japan have pushed interest rates below zero, risking accusations of competitive devaluations. more... www.bloomberg.com/news/articles/2016-01-31/as-currency-war-simmers-aussie-a-poster-child-for-market-forces
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Post by rgs2001uk on Feb 1, 2016 15:53:37 GMT 7
Try explaining the above to those teeraks waiting at Western Union offices for the monthly stipend to arive.
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