There has been a lot of talk lately in the news about interest rates, fiscal and monetary policy in the United States. The FOMC will be increasing the Federal Funds Rate this year.
The new year has ushered in new waves of legislation that are arguably good or bad, depending on who you ask.
However, there is one thing that is not being debated, but is simply being accepted.
The U.S. dollar is very strong right now.
As I have mentioned in previous articles, the U.S. has had a nearly nonexistent interest rate policy for the last eight years.
Meanwhile, the rest of the world has gone on with their lives, and continued with somewhat normal interest rate policies.
Based on foreign exchange rates, it appears to me that this difference among policies has allowed the U.S. dollar to gain its strength.
This is good and all for anyone visiting Canada or Mexico over spring break this year.
It is especially great, however, for students planning to study abroad this semester or next.
Ben Goodman, a John Carroll University student, recently visited Mexico on an accelerated study abroad trip through the school’s modern language department.
At the beginning of his trip, he noticed that his one US dollar could be exchanged for 16 pesos. By the end of his trip, that same U.S. dollar could be exchanged for 18 pesos.
If any college students are debating whether or not to study abroad over the course of the next couple of semesters, I would advise you to go.
There may never be a better (and less expensive) time to go.
I know that money is tight for most people, but it is also important to realize that right now might be the perfect time to make your dollar go the furthest (pun intended).
Optimizing your money is the key to any successful trip, and with such a strong dollar, it is easier than ever.
Over the course of 2016, interest rates will be increasing by the means of several small successive increases.
That being said, there will never be a better time than right now to travel abroad for a week, month or even a whole semester. You’ll be saving money by going sooner rather than later in just about any country you choose to go.
In this case, time is money. Therefore, grab your luggage and pack your bags. Your next adventure awaits you!