The Strength of the Australian Dollar

First of all, the Australian dollar. Australia is one of the world's largest capitalist economies with GDP of $ 57 trillion. The Australian economy is dominated by services, accounting for 68% of GDP. The Australian Stock Exchange is also the largest securities exchange in Australia and the South Pacific and is ranked ninth in the world with market capitalization. In Australia there are some of the world's largest merchandisers including BHP Billiton, National Australia Bank, Commonwealth Bank, Rio Tinto, ANZ, Westpac, ANZ, McGonagall. Bank, Woolworth, AMP. .

Last year, in 2013, the Australian inflation rate slowed down from 2% to 5% and has been stable thereafter. The continued strength of the Australian dollar, the widespread competitive pressure in the domestic economy, and the slowing of cost growth. The current cash rate is 50%, the lowest level ever. However, as the low interest rate and the expected inflation rate are expected to stay within the target of 2% to 3%, this year's growth rate is expected to rise. The Reserve Bank of Australia (RBA) expects the inflation rate to stay below this level at least by mid-2015 and wage growth is expected to continue

The economic situation in Australia seems to be very optimistic, but careful observation gives reasons to stop people. Significant rise in the Australian dollar causes consumer confrontation in the country, which adversely affects the country's current account. Despite frequent Australian current account deficits over the last 30 years, their current 6% data is not only the largest in history but also the largest of all "rich countries" in the world It is. Country consumer expenditures outweigh income and make Australia 's savings rate negative. The savings rate fell from 9% in 1990 to -2% in last year. Over the past decade, Australia's personal debt has increased more than twice the rate of the US. Most of the debt is used to buy a house as an investment. Household debt (mainly mortgage) soared from 85% of disposable income in 1996 to about 140% by the end of 2003.

Government debt is only the non-governmental net financial asset calculated in the Australian dollar. Naturally, it can not be debt. This is because institutions and organizations other than reserve banks can not create Australian dollars. Doing so will forge, this is illegal