What (if at all) impact does the value of the AUD have on foreign debt? (1 Viewer)

[Cleavage]

^ as title. This is in regard to the "Australia's place in the global economy" topic.

please don't troll nexusbrah

 

[nexusbrah]

^ as title. This is in regard to the "Australia's place in the global economy" topic.

please don't troll nexusbrah

LOL I was coming to ask a similar question.

What affects the foreign debt statistics?

 

[Examine]

The appreciation of the AUD decreases the interest service costs on Australia’s foreign debt, reducing the debt servicing ratio leading to a lower NPID and an improvement of the CAD. It also decreases the AUD value of foreign debt from this. (throw in something about how this is the valuation effect if you want).

Depreciation is the opposite.

 

[Drifting95]

The appreciation of the AUD decreases the interest service costs on Australia’s foreign debt, reducing the debt servicing ratio leading to a lower NPID and an improvement of the CAD. It also decreases the AUD value of foreign debt from this. (throw in something about how this is the valuation effect if you want).

Depreciation is the opposite.

This.

 

[ebbygoo]

You guys arent considering, however, that it means less exports and more imports, which will worsen the CAD.