IMF study highlights strength of Aussie dollar

Mozo

Thursday 25 October 2012

A new study conducted by the International Monetary Fund (IMF) has highlighted the strength of the Australian dollar.

The organisation put together a basket of goods that cost US$100 to produce in America and then compared it to countries all around the world, the Sydney Morning Herald reports.

In doing so, it could get a clearer picture of which currencies are the most valuable at the moment.

So where did Australia finish in the standings?

The IMF discovered that the Aussie dollar was essentially the third-most expensive currency on the planet, only beaten by Norway and Switzerland.

According to the IMF, the goods that cost US$100 to make in the States would set Australian manufacturers back a whopping $161.

Ten years ago, US$100 worth of products would only have cost $77 in Australia, which just highlights the rapid trajectory of the Australian currency over the last decade.

Of course, this works in favour of travellers from down under, who are getting some of the best exchange rates ever seen when venturing abroad.

The Otago Times reports that a lot of Aussies have been taking advantage of the situation by heading to the US and Europe on holiday, safe in the knowledge that their overseas travel money is stretching much further than it was in 2002.

As a result, there has been a noticeable dip in the number of people making the much shorter trip to New Zealand.

The Aussie dollar has dropped in value over the last month or so, but it is still above parity with the US equivalent.

Findings from the IMF study also showed that US$100 worth of American goods would cost £105 to create in the UK, which is a long way behind Australia.

Britain has long been a popular holiday hotspot among Aussies and people who are planning to visit the famous sites of England, Scotland or Wales can now get around 65 pence for their dollar.

Hopefully, the exchange rates will be favourable when thousands of Aussies make the long journey to the northern hemisphere for the Ashes in 2013.

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