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🇦🇺 Australia /Economy & Trade

Falling currencies, rising inflation pressure international students in Australia

From ABC Australia · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • International students in Australia face increasing financial pressure due to falling currencies in their home countries and rising inflation.
  • Currencies like the Vietnamese dong, Indian rupee, and Nepalese rupee have weakened significantly against the Australian dollar, increasing the cost of living and tuition.
  • Students are working more hours to cover expenses, impacting their studies and well-being.

Jolie Cao, a Vietnamese student pursuing a Bachelor of Design at RMIT University in Melbourne, knew studying abroad would be costly. She saved for her 2024 move and now juggles full-time studies with two casual jobs. Even with her parents in Vietnam covering tuition, she faces mounting cost-of-living pressures.

The Vietnamese dong has dropped 6% against the Australian dollar since January, making it harder for Cao and other international students to make ends meet. "With the currency exchange rate, it has become really hard recently," Cao, 21, said. "I need to work more here and balance my studies and try not to make it a stressful thing."

With the currency exchange rate, it has become really hard recently. I need to work more here and balance my studies and try not to make it a stressful thing.

— Jolie CaoA Vietnamese student at RMIT University in Melbourne describes the financial pressures she faces.

Ray Attrill, NAB's head of FX Strategy, explained that a semester's tuition fee has effectively increased from 404 million dong to 427.5 million dong due to the currency's decline. This impacts students from countries like India and Nepal, whose currencies have fallen about 12.5% against the Australian dollar this year. The Indonesian rupiah has seen an even steeper decline of about 15%.

You need 6 per cent more Vietnamese dong to buy the same amount of Australian dollars today than you did at the beginning of the year.

— Ray AttrillNAB's head of FX Strategy explains the impact of currency fluctuations on tuition fees.

Attrill attributes the currency weakening to factors including significant increases in imported energy costs from the Middle East conflict. This is compounded by the Australian dollar's own strength, having risen over 7% against the US dollar in the past six months. Weihong Liang, president of the International Students Representative Council of Australia, noted that while currency fluctuations have always affected students, recent movements have been "radical" for many families relying on remittances.

Akmal Ismail Zain, an Indonesian student studying Pharmaceutical Science, shared that his parents have felt the impact of the weakening rupiah. The financial strain highlights the vulnerability of international students to global economic shifts and currency volatility.

Many international students rely on their families to earn the money in their motherland and then transfer that to Australia.

— Weihong LiangPresident of the International Students Representative Council of Australia discusses the reliance on family remittances.
DistantNews Editorial

Originally published by ABC Australia in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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