The Rising Tide in Currency Exchange Rates - What Effect it Has on Students
- Mar 28
- 3 min read
By Ian Kim ’27
There has been much attention paid recently to fluctuations in currency exchange rates. With these changes affecting not only economists but also many students and people in the general population, this has become a serious issue.
These changes affect how much money can be transferred to other currencies; thus they ultimately affect how much money is available for students and families to spend, save and plan for in the future.
An exchange rate is the relative value of one nation's currency compared to another. For example, the exchange rate between the U.S. dollar and the South Korean won tells you how many won it takes to purchase one dollar; and there is a daily fluctuation in the exchange rate based upon a variety of global factors including inflation, interest rates, political stability and international trade.
Recently, there has been a worldwide trend towards strengthening of the U.S. dollar against a number of other currencies.
Students who are planning on studying abroad can be affected directly by the increase in the strength of the U.S. dollar. As the dollar continues to strengthen relative to the other currencies used by many countries (such as Canada), the price of property, tuition, and everyday goods and services will increase in these countries because it will take a greater number of other currencies just to pay for a single U.S. dollar. A family that previously had determined that they were financially able to send a student to another country has found that they are not financially able to do so anymore simply as a result of the change in the value of the dollar compared to the currency of the country where that student intends to study. Consequently, this will result in many students being forced to reconsider their plans to study abroad or look for different locations.
Currency changes also impact how much we spend on things that we get from another country. We rely on lots of the things we use every day like electronics, clothing and food to come from other countries. If our local currency is weak, then the items will go up in price. Students may see this reflected in higher prices at stores or on websites even if they don’t necessarily connect it back to how much the currency was worth at the time of purchasing.
Another factor to consider is travel to other countries. Exchange rates are constantly in flux, and therefore what might have been an affordable experience traveling abroad, now becomes too expensive or vice-versa. When students have a strong local currency, they will be able to get better value prices for purchases while they are traveling overseas.
Conversely, if they have a weak local currency it may inhibit their ability to travel or force them to change their travel plans and budget accordingly. Although some of this might be overwhelming because of all the changes that are happening, it further illustrates the need of being educated in regards to finances. Being able to understand exchange rates allows students to make more informed decisions about saving money, choosing schools and planning vacations. Ultimately, this shows just how interconnected the world we live in has become; what is going on in one place can affect an individual or group of individuals thousands of miles away.
As a concluding statement, currency exchange rate values are more than just screen representations; they exert tremendous influence over individuals' daily lives. With that said, it will become increasingly important for students to remain cognizant of these fluctuations. As the global marketplace changes and evolves, developing an ability to adapt to and comprehend these financial market pressures will be of great value in years to come.
References
Image 1:
Exploring the Role of Exchange Rates in Global Trade - maseconomics. (2022, December 21). https://maseconomics.com/exploring-the-role-of-exchange-rates-in-global-trade/
Image 2:
Definition of exchange rate. (2026, April). Collinsdictionary.com; HarperCollins Publishers Ltd. https://www.collinsdictionary.com/ko/dictionary/english/exchange-rate
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