Problems relating to Trade and Investment on Australia

12. Exchange controls
Issue	Issue details	Requests	Reference

(1) Unstable and Ups and Downs by Large Margin in the Rate of Foreign Exchange	- Radical and sustained weakening of A$ has kicked up the import purchase price of home electric appliances, which however cannot be passed on to selling prices, aggravating profitability of member firm's subsidiary (MFS). - In a transaction between related parties, the prevailing Yen depreciation enables MFS to offer special prices to its customers. However, MFS runs on a thin margin, so that if the exchange rate swings toward appreciation of Yen, it will instantly show operational loss: such is the severity of the fluctuation band.	- It is requested that GOP takes step to: -- stablise foreign exchange fluctuations, and -- holds the fluctuation band within a few percents in 6-months.
	(Action) - With the prevailing low oil prices in the background, on December 2014, the Australian dollar declined to the extent of A$1=US$0.82, a decline by as much as 13% compared to the rate of 30 June, half a year ago. In recent years, the Reserve Bank of Australia (RBA) has expressed its view that Australian dollar is quoted at high level relative to its economic fundamentals, showing its stance to continue the low interest policy, while Governor Glen Stevens, at The Nikkei interview, stated: "An appropriate level of Australian dollars is A$1=US$0.75."