The Australian dollar advances.
But are we winning?
As I write this, one Aussie dollar buys $1.0027 US dollars.
Depending who you talk to, this is great news or terrible news.
I’ve read so many reports, I’m not sure how this affects business as a whole.
Let’s break it down to see what we can learn.
It’s now cheaper than ever to go to Bali (if you’re into that sort of thing).
As our citizens exit the country in droves, Australian tourism operators are getting hit for six.
You can now buy Victoria’s Secret undies like they’re a box of tissues.
Local bricks-and-mortar retailers are losing out big time, as customers take their business online.
As if these shops didn’t already have enough to cope with after the GFC, several interest rate rises and a loss of main street parking to peak hour clearways!
Big, new, fancy TVs are getting cheaper and cheaper.
Old technology is worth bugger all, so people are dumping it on the street – with dreadful environmental consequences.
A strong dollar is helping our national accounts, or debt, or something.
So they tell us.
When I worked in automotive engine manufacturing, each time the dollar went up a cent, it wiped at least a million bucks off annual profit.
And when it rose a few cents in a row, contracts went to Brazil, Eastern Europe or South Korea.
Being in HR, I had to tell our people they were out of a job.
Well, that’s my take on this fiscal frivolity. It’s varied, personal and unauthoritative.
I don’t imagine any one of us has a definitive answer as to whether, on balance, a high dollar is good or bad for business.
I do, however, suspect that if we all throw in our two cents, my wish for a clearer picture may be granted.
To this end, I’d greatly value your contribution.
In other words,
the buck stops
Paul Hassing, Founder & Senior Writer, The Feisty Empire