…Mining Sector Bust Looms in Western Australia
Now, with the boom-to-bust mining cycle becoming a reality even as the Australian dollar has been taking a big hit, the economy is seen slumping, too!
Per today’s currency rates 1 Australian dollar yields 1.03 Singapore dollar – almost nearing parity.
Just a few years ago, when my daughter was studying in Sydney, the rate was hovering between 1.20 and 1.35.
The New Zealand dollar has become stronger and today 1.00 AUD = 1.07701 NZD.
According to a report in The Australian earlier this month, though, while the boom is over Western Australia was not seeing a bust yet.
The decline in oil prices took its toll on commodities too, forcing mining companies to scale back investments. The price of Iron ore currently, for instance, is under US$50 whereas it was more than double that not too long ago. A story similar to that of oil!
The fall in the Australian dollar, though, is good news for tourists and students as travels and education there become more affordable now than before.
G Joslin Vethakumar