The government down under has said that it plans to raise the country’s debt limit by over two thirds as it attempts to allay fears of a future economic crisis.
With the US debt ceiling recently making headlines Australia themselves are due to reach their own ceiling of AUD$300bn in December.
With Australian Dollar exchange rates having strengthened over the last few weeks the RBA is worried that the rates are too strong which could harm the overall economy. Australia’s current debt to GDP is approx. 30% compared to the UK standing at 92% and 105% for the US.
The likelihood is that exchange rates will remain strong in the short term so if you are thinking about selling AUD into GBP and don’t want to miss out then contact me directly by email Tom Holian [email protected]