Money Exchange Booth Refused to Exchange Aussie Dollars

October 11, 2008 · Posted in Economy 

In Singapore, where it uses Singapore Dollars (SGD), several money changers were found to close its booth early, due to the recent plunge of the stock market in the United States. The financial crisis has found its way out of America to hit Europe, Australia and even Asia. What is seen like a regional affair has ballooned way beyond control to a global situation; such that several companies worldwide were faced to take drastic actions to reduce expenditures and implement cost-saving measures. The only country that I knew that was least affected is China, which currently has minimal impact due to its little reliance of foreign investment.

Obtaining the data from Google Finance (as seen on the thumbnail at the right), Australian Dollars (AUD) seem to be at the receiving end of this major crisis, as some viewed this situation to be even greater than that of The Great Depression in 1929. Pitting against the SGD, this was the first time in so many years that AUD falls below the ratio of 1:1.

The changes was so quick, to the extend that the fluctuation was significant every single minute. From the last 2 days, AUD had found itself dugged into the trench with it fast-falling currency value. Money changers refused to exchange Aussie Dollars, claiming that they do not have any left. Certainly, many expect AUD to rise against SGD again, and it’s probably that they did it for the best of their cause.

Below is a rough estimate of what has pumped into the market to save the crisis:

Country Effect
United States Nearly US$4 trillion
Britain Over GBP600 billion
Japan At least 30 trillion yen
ECB At least EUR500 billion
Russia At least 1 trillion roubles

Above estimates are provided by external sources, as government moved towards a frantic resolution to save the market and banking system.

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