Washington Week: Student Voices (O)

Sliding dollar squeezes Emory students abroad
By Leo O'Toole
Emory Wheel (Emory U.)
10/04/2007

(U-WIRE) ATLANTA — Recent declines in the strength of the dollar's value have put a damper on Emory students' wallets and experiences studying abroad in Western Europe.

The dollar's recent decline in strength relative to the euro and the British pound have caused a decline in purchasing power, and Emory students find their study abroad experiences costing considerably more than anticipated.

"I find that much of what I had originally planned on doing while I was abroad was hindered by cost," Jenna Kelsey, a College junior studying in Barcelona, wrote in an e-mail to the Wheel. "The hardest thing to cope with has been the money provided to me by my parents. At Emory, my parents allocate me a certain amount of money per semester, and they have given me that same amount for my time abroad."

She wrote that since they give her the same amount they would give her at Emory in dollars, not its euro equivalent, she loses some money exchanging currency.

With the cities of Western Europe so closely situated to one another, many students often visit several in different countries. Kelsey wrote that recent changes in exchange rates have affected this opportunity for her.

"Travelling has been difficult as well. While Europe boasts the largest amount of discount airlines, their prices are all in euros," she wrote. "So what may seem to be a good deal, such as a 100-euro flight, is actually costing $142.75."

College junior Hayley Kenslea wrote about a similar experience, in her case from England, "With the pound about twice the dollar's strength, even a 'low-price' item is still expensive," she wrote. "Everything is priced as if the pound equaled the dollar in strength, so a sandwich that would cost $4 in America costs 4 pounds here. But, as we know, that's really ending up to be an $8 sandwich.

"I was abroad in Vienna this summer as well ... but the difference is much more noticeable here in London," Kenslea wrote.

College junior Halley Theodore, studying in Salamanca, Spain, wrote that it can be easy to forget the higher cost of living.

"Every day I pass a bank that displays the daily exchange rates for the euro, and every day I get slightly more depressed," she wrote. "Living expenses are already higher here; adding the additional cost of food and entertainment only makes my wallet lighter."

But Kelsey wrote that the trade-off isn't all that bad.

"You must remember, certain things are a great deal cheaper abroad — or at least in Barcelona. Fruits and vegetables are significantly less expensive than they are in the States, as are wines and various other types of alcohol," Kelsey wrote.

Kelsey added that three-course lunches rarely cost more than 10 euros and that a glass of fine Spanish wine can cost as little as half a euro.

Theodore doesn't necessarily view this advantage the same way.

"The only thing that is significantly cheaper is alcohol, which we consume to drown our sorrows over the declining dollar," she wrote.

The dollar's value has been steadily declining against the euro, sliding on Friday to approximatly 70 cents to every euro — an all-time low.

The dollar similarly fell against the pound, falling to 49 cents to every pound. Although the dollar was weaker earlier in the summer, there has been a general trend of the pound growing in strength relative to the dollar during the past two years.

Economists have attributed the most recent declines in the dollar to the Federal Reserve's decision to cut interest rates by half a point to prevent the sub-prime mortgage collapse from adversely affecting other parts of the economy.

Other factors influencing the weakness of the dollar include long-standing national debt and an increase in the federal budget deficit.

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