By Na Jeong-ju
Staff Reporter
Canada, Australia and New Zealand are the largest destinations for Korean students who want to study English abroad. Koreans tend to choose the countries because the education services are cheaper than the United States.
However, they have been losing merit as the value of their currencies has risen sharply in recent months, raising the financial burden on Korean parents.
On the other hand, studying in the U.S. has become cheaper on the appreciation of the Korean won against the dollar.
According to currency dealers, 790 won used to be enough to get one Canadian dollar in South Korea in early February. However, the amount rose to 958 won as of the end of last month.
That means, parents who remit $5,000 Canadian dollars to their children in Canada for monthly tuition and living costs need 4.79 million won every month, up from 3.97 million won in early February.
This is also the case for parents who have children in Australia and New Zealand. The Australian dollar was traded at 734 won in early February, but it rose to 840 won at the end of last month. The value of the New Zealand dollar against the won also rose to 702 won from 646 won during the same period.
``Parents in South Korea need more money to support their children studying in Canada, Australia and New Zealand because of the won's continuous fall against their currencies,'' said Jeong Yeon-ho, a Korea Exchange Bank official.
Currency dealers say the U.S. dollar's global weakness is expected to continue on rising oil prices, so it is better for the parents who have children in Canada, Australia and New Zealand to buy their currencies sooner and on several occasions to avoid risks.
Last week, the Canadian dollar soared to a 47-year high against a beleaguered U.S. dollar thanks to high oil and gold prices.
The Canadian dollar was traded at $1.05, valuing each U.S. dollar at 95.23 Canadian cents. The Canadian currency reached the level for the first time since March 1960.
If the currency surpasses the US$1.0614 level of August 1957, it will be at its highest against the greenback in almost 130 years. The Canadian dollar has climbed more than 22 percent so far this year.
Meanwhile, Korean parents needed 4.71 million won to transfer $5,000 to their children in the U.S. in early February. However the amount has been cut to 4.58 million won, as the greenback has continued to weaken against the won.
The Australian dollar has also risen to its strongest in 23 years. Australia's dollar has jumped 17 percent this year, poised for its biggest annual advance since 2003, as its central bank has pushed up the overnight cash rate target to an 11-year high of 6.5 percent to slow inflation. The currency has risen against 15 of the 16 major currencies since Oct. 24.
The New Zealand dollar is also continuing to strengthen against the U.S. dollar due to weakness in the greenback and the ongoing attraction of New Zealand's high interest rates.
jj@koreatimes.co.kr
