Basic quiz reveals Australians’ lack of understanding on impacts of AUD fluctuations
Basic quiz reveals
Australians' lack of
understanding on
impacts of AUD
fluctuations
A Money Transfer Comparison Study
January
2023
About the study
Money Transfer Comparison commissioned a survey of 1002 Australians to gauge – in a quiz format – their understanding of the Australian dollar and impacts of its exchange rate fluctuations.
The Australian dollar fluctuated throughout 2022, peaking on 5 April to USD$0.76 and falling on 15 October to just USD$0.62 – the biggest fall since April 2020. It rose again on 15 November to $0.68, before falling slightly to $0.66 by 20 December. Respondents were asked to select the false statements from the following list:
- When the Australian dollar drops in value against the US dollar, products that Aussies purchase from the US are cheaper
- The exchange rate is a fee charged by banks on every overseas purchase or overseas money transfer.
- When the Australian dollar exchange rate increases against the US dollar, goods and services in Australia are cheaper for US tourists.
- When the Australian dollar increases against the US dollar, our export prices go up for foreign buyers.
Across the statements, only statement four is true.
The survey respondents cover a geographical and population spread that is reflective of the Australian population.
What proportion of Australians chose the incorrect statements about AUD impacts?
Money Transfer Comparison presented survey respondents with four statements about the Australian dollar and asked them to identify the statements they believed are false. A surprising proportion did not appear to have fundamental knowledge about direct impacts of AUD movements on prices and the economy. Small proportions of respondents were able to correctly identify the false statements.
More than half (58 per cent) of respondents erroneously believe that when the Australian dollar drops in value against the US dollar, products that Aussies purchase from the US are cheaper.
Two thirds (65 per cent) of respondents erroneously believe that the Australian dollar exchange rate is a fee charged by banks on every overseas purchase or overseas money transfer.
Two thirds (65 per cent) of respondents erroneously believe that when the Australian dollar exchange rate increases against the US dollar, goods and services in Australia are cheaper for US tourists.
One quarter (26 per cent) of respondents erroneously believe as false that when the Australian dollar increases against the US dollar, our export prices go up for a foreign buyer.
A third (33 per cent) of respondents erroneously believe that all of the statements are true, however, only statement four is true.
Which of the following statements are false? Choose all that are false.
Money Transfer Comparison compared responses across age groups, and found that young Australians have the lowest levels of understanding about the Australian dollar. A higher proportion of younger Australians incorrectly believe as true the three false statements, and incorrectly believe as false the one true statement.
More than two thirds (66 per cent) of under-35s incorrectly believe the statement 'When the Australian dollar drops in value against the US dollar, products that Aussies purchase from the US are cheaper'. This compares with half (54 per cent) of over-35s.
A bigger proportion of younger respondents incorrectly identified as true the statement 'The exchange rate is a fee charged by banks on every overseas purchase or overseas money transfer'. Three-quarters (74 per cent) of under-35s believe this to be true, compared with 68 per cent of 35-54- year-olds and 59 per cent of over-55s.
Similarly, three-quarters (74 per cent) of under-35s erroneously believe the statement 'When Australian dollar exchange rate increases against the US dollar, goods and services in Australia are cheaper for US tourists' as true. This compares with 64 per cent of 35-54-year- olds and 61 per cent of over-55s who believe this to be true.
Similar proportions of respondents across the age groups incorrectly identified the true statement – when the Australian dollar increases against the US dollar, our export prices go up for foreign buyers – as false. A quarter (27 per cent) of over-35s and 24 per cent of 18-34-year-olds incorrectly labelled the statement as false.
Similar proportions of respondents across all age groups incorrectly identified all four statements as being correct, despite only one being true. Thirty-nine (39) per cent of 18-34-year- olds incorrectly identified every statement as true, followed by 31 per cent of over-35s.
Which of the following statements are not true? Choose all that are false. By age.
Money Transfer Comparison analysed responses across the States. More than half (54 per cent) of West Australians erroneously believe the statement 'When the Australian dollar drops in value against the US dollar, products that Aussies purchase from the US are cheaper' as true. This compares with 55 per cent of South Australians, 58 per cent of Victorians, and 62 per cent of Queenslanders who incorrectly believe the statement to be true.
Similar proportions of respondents across the States incorrectly identified the true statement 'When the Australian dollar increases against the US dollar, our export prices go up for foreign buyers' as false. Nearly a third (30 per cent) of South Australians, 28 per cent of NSW respondents, 26 per cent of Victorians, 24 per cent of Queenslanders and 22 per cent of West Australians labelled this true statement as incorrect.
More Queenslanders than respondents in other States also incorrectly stated that all the statements are true. More than a third (37 per cent) of Queenslanders believed all the statements to be true, followed by 34 per cent of South Australians, 33 per cent of Victorians and 31 per cent of NSW respondents.
Which of the following statements are not true. Choose all that are false. By State.
| Response | ||||||
|---|---|---|---|---|---|---|
| State (%) | ||||||
| NSW | VIC | QLD | SA | WA | ACT | |
| When the Australian dollar drops in value against the US dollar, products that Aussies purchase from the US are cheaper | 44 | 42 | 38 | 45 | 46 | 57 |
| The exchange rate is a fee charged by banks on every overseas purchase or overseas money transfer | 34 | 36 | 38 | 34 | 32 | 29 |
| When the Australian dollar exchange rate increases against the US dollar, goods and services in Australia are cheaper for US tourists | 35 | 36 | 37 | 34 | 34 | 36 |
| When the Australian dollar increases against the US dollar, our export prices go up for a foreign buyer | 28 | 26 | 24 | 30 | 22 | 50 |
| All of the above are true | 31 | 33 | 37 | 34 | 32 | 29 |