The fall of the Aussie Dollar benefits wannabe Wallabies
Over the last few years UK expats living in Australia were often complaining about the cost of goods and services in their new homeland. The high value of the Australian Dollar saw the cost of essential goods outstrip costs seen in the UK and many parts of Europe.
Food was typically more expensive in Oz than back home a fact that disappointed many expats who had headed to the other side of the world when the Australian currency was far weaker. Some expats were even forced to head back home due to the hike in value of the currency.
The cause of the Australian Dollar’s rise was the success of the country’s mining boom. Thanks to the large reserves of iron ore and huge demand from rising economies such as China the Australian economy boomed whilst Europe struggled. In turn the value of the Australian currency rocketed despite warnings by the country’s Central Bank.
Now however things are taking a turn for the better for expats and wannabe Wallabies.
Just this week the Australian currency tumbled to a three-year low against the Pound as the RBA stepped up its game to devalue the currency which it blames for damaging the Australia’s tourism and manufacturing industries.
RBA Governor Glenn Stevens last week used a speech to force down the currency by saying that the Central Bank was keeping an open mind about intervening in the currency market in order to force the ‘Aussie’ lower. The threat of using quantitative easing measures sent the currency spiralling lower against all of its most traded peers.
A fall in the currency means that your Pounds will go a lot further and means that buying property, services and other goods is cheaper.
UK expats and those wanting to emigrate to Oz are likely to benefit further in the future as the rate of the ‘Aussie’s’ decline is not expected to stop any-time soon.