Climate policy of the Australian government’s currency is bad, analyst says

The Australian dollar could find long-term relief of cyclical downturns, when the country’s government decided to get serious about climate change, according to ABN Amro Bank NV. The Dutch bank expects the hub of the country in the direction of environmental policy making after the devastating fire damage to the economy and the currency. A shift to a greener economy could change the basic performance of the Aussie, making it less from worldwide risk sentiment driven, says his senior foreign exchange strategist Georgette Boele. “It could change the character of the Australian dollar, if the government makes climate policy and achieve the highest priorities of the Agreement of Paris,” he said in a note to clients. “The Australian dollar is likely to be less cyclical, less resource driven and less dependent on the state of the Chinese economy and more driven by the state of the national economy.” The Australian dollar has been hurt by the spread of the crown, as the impact on Chinese demand can be seen for Australian raw materials. It is one of the worst sections, brought Complex 10-year currency losses alongside fellow sensitive currencies to the dollar risk of New Zealand and the Norwegian krone, more than 4% in 2020 decreased, while ABN Amro , the current remains of the Australian government notes disinterested changes in climate policy, changes in public opinion after forest fires. There is also the possibility that the government could be forced through litigation with the climate challenge will encounter as the Netherlands, Boele said. But although the Australian economy has become more environmentally friendly, the transition would be a short-term difficult question for the Australian. A considerable reduction of coal, LNG and agricultural exports reduce carbon dioxide emissions from the extraction and transport would be, but would also be the work of the lower export revenues, Boele said. “The results of investments and lower CO2 emissions would only become visible in time – years or even decades,” he said. “So in the next few years the fundamentals of the Australian economy is in jeopardy, and that could weigh on the Australian dollar.” -With the help of Charlotte Ryan.
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