Application Exercise 8u: Exchange rate scenarios
Scenario | Affects supply of or demand for AUD Increase or decrease | Explanation | AUD appreciates or depreciates |
BHP pays dividends to German shareholders | Supply increases | BHP sells AUD to buy Euros | depreciates |
A group of UK tourists visit Melbourne | Demand increases | UK tourists buy AUD for their visit | appreciates |
Telstra buys large amount of telecommunications equipment from China | Supply increases | Telstra sells AUD to buy Yuan | depreciates |
Harvey Norman imports a container load of TVs | Supply increases | Harvey Norman sells AUD to buy foreign currency | depreciates |
Australian miners sell lithium to Japan | Demand increases | Japanese buyer purchases AUD to pay for lithium | appreciates |
Australian government receives interest from USA borrowers | Demand increases | US borrowers buy AUD to pay interest | appreciates |
Woolworths buys bottled chillies from India | Supply increases | Woolworth sells AUD to buy Rupee | depreciates |
Paul and Coco send money to relatives in Shanghai | Supply increases | Paul and Coco sell AUD to buy Yuan | depreciates |
Tesla pays dividends to its Australian shareholders | Demand increases | Tesla buys AUD to pay dividends | appreciates |
A large number of international students come to study in Melbourne | Demand increases | Students buy AUD to pay for their courses | appreciates |
Fortescue pays a Panama shipping company to carry its coal to Shanghai | Supply increases | Fortescue buys Panamanian balboa to pay for service | depreciates |
Rajiv comes to Australia from India to work in an Australian school and brings 1m rupees | Demand increases | Rajiv buys AUD | appreciates |