Coronavirus caused numerous funding concerns globally. Fear about the economic fallout continues to bother investors and governments. Australia is one of the countries that had undertaken the toughest measures to slow the spread of the virus.
The decision of the Reserve Bank of Australia to fend off the negative economic impacts made the AUD fall sharply. This includes committing to a sizeable quantitative easing program and cutting interest rates (which include cutting the official cash rate to 0.25%). It is said the rate would not be increased all until the country reaches the target – full employment.
Starting from March 20, the Reserve Bank of Australia will be buying government bonds to ensure the bonds stay around 0.25%.
Another thing that made the Aussie sink was the fact investors were liquidating almost everything for cash. The currency suffered a lot against the US dollar and the British Pound. This already risky currency is as low as it was 17 years ago.
At the same time, the GBP rate remains well-positioned against the AUD and reaches the highest point since May 2016. The GBP/AUD exchange rate is trading at over AUD$2.00 as of 23rd March.
You can exchange your GBP’s now to take full advantage of the elevated exchange rate. You can do this in our multi-currency wallet and hold your AUD’s free of charge until you are ready to transfer the funds out.
If you have plans on
traveling to Australia, maybe even moving there, renting, buying a property or
a car – you can take advantage of this significant change. Although the market
will certainly remain volatile for a couple of months to come, it is still
likely the GBP/AUD exchange rate will retain the ascending trajectory.
Coronavirus is much more than just medical question and it is nearly impossible to find an easy fix for the whole situation. Yet, this could be the right time to deal with some market anxieties and find something good when everything seems to be falling apart.
Make sure to contact us if you want to get the best GBP to AUD exchange rates!