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13th April 2020, 04:26 PM
#34
Our currency probably won't strengthen against the major currencies, as we rely too much on our imports, and exports... we don't have enough domestic manufacturing left to cover our basic necessities in the long term. Even if we are one of the first countries to eliminate the virus and have everyone go back to work, Australia won't be able to generate the revenue we need to pay off the debt generated from all of the government money splashed out on businesses and workers, because our four biggest exports will be heavily impacted.
Tourism and Education (foreign students) can't restart while the borders remain closed (until there is a vaccine or cure), while the demand for our coal and iron ore (for construction, manufacturing and energy) will be significantly less if every other country is suffering from a recession or long term depression.
Most of the currency rates dipped mid-March from the shock of the virus impact and the uncertainty or mixed-messages from certain politicians, but have then bounced back in the last few weeks, so that most are now close to what they were at the beginning of March.
We actually got close to parity with the NZ$ in mid March... I don't recall us ever getting below parity with them, which says something about the weakness of our economy at the moment if the AU$ could almost be worse than New Zealand's.
As of today, according to xe.com, these are the current rates for AU$1...
- US$ - 0.6336 (down 2 cents since early March)
- GB£ - 0.5079 (close to what it was in early March)
- JP¥ - 68.375 (down 2 yen since early March)
- EU€ - 0.5793 (down 2 cents since early March)
- NZ$ - 1.0444 (close to what it was in early March)
(bank and paypal rates are 2-3% less than the figures above)
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