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Changes In The Australian Economy Over The Year 2012

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YEAR 2012 Based on answer in Q1 (i), we can conclude that exchange rate between Australia and Malaysia in year 2012 is fluctuation over the year. Perhaps this consequence arise is because of there have a structural change in Australia in year 2012. When a country’s structural change, due to the economic growth, there will be some satisfactory exchange rate adjustment take place within the Australian economy structural. These exchange rate trends are compelled by a factor, which is import and export transactions. Due to the average income have increased, Australian demand for services can be said has increased rapid than the demand for goods. Australians are willing to spend more on services at this time. Most of the services market that existed …show more content…

At this stage, the fiscal institutions are being strengthened. Bank Negara Malaysia (BNM), an institution that always maintain Malaysia’s accommodative monetary stance will own adequate of policy credibility to control the market exchange rate. Therefore, Malaysia’s financial status in year 2013 was being tended to stability. Malaysia’s financial system is backing by strong supervision and regulation. However exchange rate of Malaysia also depends on its …show more content…

Interest rate is one of the factors that can influence the exchange rate in a country. This is quite a complicated area, but in universal, higher domestic interest rates may impact a country more attractive to foreign investment. After that, their inflation rate will keep in lower rate, which is able to pushes up the value of a currency. RBA Governor Stevens has said in his speech at that time, Australian economy was eager an injection of confidence rather than lower interest rates. Year 2015 and 2016 In year 2015, Malaysian currency was suffered in a number of issues (domestic and external issues). Fallen of RM beginning in July when the 1MDB crisis pop out suddenly and force RM depreciated rapidly. The exchange rate in between Malaysia and Australia has a significantly changes in this circumstance. In late April of 2016, 1MDB crisis returned back to the international headlines and assumption was made about the Federal of Malaysia will move up the exchange rates again. The currency is in better shape than it was at the beginning of 2016 when compare with currency in Australia. Due to the exchange rate of Malaysia become well, Malaysia’s fight with the anxious of 1MDB investment fund may be approaching the end. However, the effect of the mismanaged fund on the currency is still obviously to

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