Businesses need to adapt to cope with exchange rates

So far, 2012 has been an extremely challenging year for companies in Australia and many are facing a constant battle to remain profitable.

A recent study by National Australia Bank showed that trading conditions are at their worst point for three years and a lot of organisations appear to be feeling sorry for themselves.

Many have blamed the booming mining sector for forcing the value of the dollar up, but Reserve Bank of Australia governor Glenn Stevens disagrees.

He feels that Aussies have changed their spending habits, which has made it harder for firms to compete.

Mr Stevens added that traders need to adapt to the current exchange rates if they are to thrive.

"So the test really is: how many of those enterprises can get their productivity up because that's really the way out in terms of a high exchange rate," he remarked.

Despite the problems, recent figures released by the Australian Bureau of Statistics showed the uptake of business loans increased in April 2012.

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