Exchange Rates Explained: Why the Dollar Matters to the Economy

Exchange rates do more than just affect your holiday budget—they shape the entire Australian economy. In this episode, we unpack how exchange rates function and why their movements matter. From influencing the prices of imports and exports to shaping inflation, employment, and economic growth, you'll learn how currency appreciation and depreciation ripple through trade, investment, and the balance of payments. We also explore the time-lagged impacts on foreign debt and income. Whether you're a student, investor, or curious mind, this episode will give you a solid grasp of how currency shifts affect real economic outcomes.

Source: https://www.rba.gov.au/education/resources/explainers/