“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
Thomas Jefferson (1743 - 1826), Letter to the Secretary of the Treasury Albert Gallatin (1802)

Being located in foreign countries, many of us have been fixated on currency converters, and finding out how low our paydays really are.  However, one thing to keep in mind, currencies are a matter of perspective, it depends what end of things you are looking at. 

In part 2 of our 5 part series on the global economic crisis and the effects on the EFL teacher, we will give an in depth look at currency fluctuations over the past 3 months for major related countries.

To begin, we will be comparing all currencies to the Euro rather than the US dollar due to the US current currency fluctuations, the Euro strength, and that Europe is NOT an English speaking location.  We will then convert each country’s currency value changes into percentages (from the 3 month average) rather than actual currency value, that way we can compare the fluctuations.

The Following Charts for each country show the numerical percentage of exchanging the EFL destination country into Euro (Seeing that most teachers at some point in time exchange).  These results are taken on the 21st of October and may have fluctuated since.  A brief description for each country and working conditions follow.  Click to view larger image.


Brazil: "SAO PAULO, Oct 22 (Reuters) - Brazilian shares plummeted on Wednesday as global stock markets and commodities dived on fears of recession following the financial crisis, while the local currency slumped against the U.S. dollar." - Reuters

Brazil has definitely been one of the most hardest hit countries that recruits EFL teachers (if not THE worst).  At some points this month the Brazilian Real fell almost 30% to the Euro.  Teacher salaries have fallen by hundreds of Euro.  However, the majority of teachers in Brazil do not go to save but rather experience the country.  However, inflation is expected to reach an all time high, and interest rates may rise. 

"Quickening inflation will prompt the central bank to raise interest rates further even as economic growth slows in the worst credit crisis since the Great Depression, said Banco Real private banking economist Fabio Susteras. Annual inflation, which reached 6.2 percent by mid-September, has been above the central bank's 4.5 percent target since January." - Bloomberg
Teachers may feel the repercussions in the everyday shopping items, utility bills, rent... and in the extreme case, layoffs if the school runs into financial problems.

Cambodia: "PHNOM PENH, Oct. 15 (Xinhua) -- A senior official of the Cambodian Ministry of Economy and Finance said that the Kingdom is likely to weather the recent global financial crisis, national media reported Wednesday.
The global financial crisis will affect Cambodia's economy, but for the time being there is no substantial impact, Aun Porn Moniroth, Secretary of State for the Ministry of Economy and Finance, told the Phnom Penh Post in an interview. " - Xinhua Net

Cambodia may not be on too many peoples destination list for teaching, however believe it or not, the industry is growing.  The jump in the Cambodian Riel may be the boost they need to defeat the ever growing inflation that has plagued the country for years. The Cambodian Riel has experience a steady growth to the Euro of almost 20% in 3 months, not a bad raise if you ask me! 

China: "China's powerful economic machine is losing steam, raising significant concerns for many businesses that are counting on the Asian nation to help them ride out the global financial crisis.

The Chinese government said Monday that economic growth in the third quarter slowed sharply from a year earlier to 9%, the lowest level in more than five years." - LA Times

China's Yuan has experienced a huge increase similar to Cambodia.  It would appear that China boomed following the Summer Games.  The demand for English teachers is huge and growing on a daily basis, and the extra jump in currency value makes it that much more appealing.  However, the Chinese economy is slowing.

"With the chances for global recession increasing, it's becoming clear that not even the world's fastest-growing major economy can avoid a pronounced slowdown. Any remaining hopes to the contrary were dashed recently when China's National Bureau of Statistics released the country's latest economic data: in the third quarter, GDP growth had slipped to 9%, the slowest quarterly pace since 2003. Meanwhile, estimates for 2009 growth are being slashed to as low as 8%, which would be a dramatic deceleration from last year's 12% rate and would rank as China's worst results since 1999. " - Time


Hong Kong: "HONG KONG, Oct. 22 (Xinhua) -- Hong Kong stocks once plummeted more than 1,000 points but narrowed its losses to 774.57 points to close at 14,266.6 as fears of global recession further shattered market confidence. " - Xinhua Net

Hong Kong's dollar can almost be pinned to the Chinese Yuan the past 3 months.  Teachers have experienced a great pay raise the past few weeks.  However, it is warned that the slowdown is soon coming.  Though the dollar appears to be doing well, the banks and markets have been crawling.


Hungary: "Hungary's central bank Wednesday made a steep emergency interest rate hike to stabilize the country's currency, hurt by the financial crisis, raising the possibility that other countries in the region could follow its lead." - Forbes

One of the more talked about and desired locations for EFL teachers has taken a definite hit due to the financial crisis.  The falling Hungary Forint has caused panic and despair amongst not only teachers but other European nations, under fear that this drop may soon come to their own country.

"Central banks in other emerging markets might follow Hungary in drastically hiking rates to defend falling currencies but risk further damaging troubled economies, analysts say, with the focus switching to Turkey's rate decision later on Wednesday." - Reuters

India: "Indian stocks fell 4.81 percent Wednesday as disappointing earnings reports from U.S. companies depressed markets across the region... - Forbes

"India's economic expansion could lose momentum this year because of the global financial crisis, but should get back to its 9 percent growth trajectory when normalcy returns, the prime minister said on Wednesday." - Reuters

India has relied on English as a Second language for decades.  Unlike most other Asian counties, India uses English as an official language.  Though India may not have many EFL teachers, it is an emerging market and in many situations considered more voluntary.  However, the slowdown of the economy may put that on hold.  The actual fluctuations of the Indian Rupee shows considerable instability, but the over all decline of the currency is under 3% in 3 months, far less dramatic than other countries.

Indonesia: "BEIJING, Oct. 23 (Xinhuanet) -- Indonesian President Susilo Bambang Yudhoyono hoped here Thursday the Asia-Europe community to restore confidence and stability against the current global financial crisis.
"We should look beyond the crisis, change the financial sector, not let the crisis of financial market turn to the crisis of economic confidence," the visiting president said to hundreds of business executives while addressing the conclusion session of the 11th Asia-Europe Business Forum (AEBF11) held from Oct. 21 to 23. " - Xinhua Net

Once again, just like Hong Kong and Cambodia, Indonesia appears almost identical to Chinese currency.  And like the other similar Asian countries, the Indonesian Rupiahs seems to be benefiting from the financial crisis.  However, the shaky economies of the world make the future unknown, but the effects on the people are still to show there effects.

"Oblivious to the global crisis, food vendors, cleaners and gardeners at the Indonesian Stock Exchange struggle to make ends meet on a few dollars a day while brokers gamble millions inside.
"I have no idea about what's happening," said Firman, one of the army of cleaners who service the bustling exchange, as he swept the marble lobby and emptied standing ashtrays outside the trading floor." - AFP

Japan: "The great exception to this dollar strength is the yen. At ¥98.22, the dollar is not far above levels last seen in 1995. The yen is benefiting from flight-to-safety buying of its own, economists said, even though the Bank of Japan's main interest rate target, at 0.5 percent, is the lowest of any major economy.

But while the decline in European currencies could bolster the fortunes of European exporters, the yen is at a level to cause intense pain to Japanese manufacturers.

"At these exchange rates and with the downturn in the world economy, Japan could be headed for depression, not just a recession, as they've been completely dependent on exports for growth," said Norbert Walter, chief economist of Deutsche Bank in Frankfurt." IHT

On one side of the coin, Japan's Yen is really picking up, bringing that extra lift of over 20% in just a few months.  However, due to the Yen's current strength, export is beginning to suffer.  Predictions are not too high as stocks begin to fall and the economy slows.  But teachers relying on sending money home have most definitely benefited from the current events.

Laos: "Lao authorities acknowledge that the current global financial crisis, which is crippling economies across the world, will make it difficult for Laos to reach its previously stated goal of lifting itself out of the least-developed country status by 2020, because that goal was based on the expectation that Laos' economy will continue to grow at a rate of 8% annually." - Voa News

Laos has slowly been making its way into the mainstream Asian countries, and has in fact made it to be a major stop for many EFL teachers, may not be affected from the crisis as other countries.  Just like China and Japan, the Lao KIP has benefited by nearly 15% the past few months.  However, the economy is expected to slow due to the current crisis.


Mexico: "Mexico and Brazil, the region's two largest economies, spent chunks of their federal reserves to stem unexpected currency declines. Mexico introduced an emergency stimulus package, while Brazil offered $2 billion in loans to exporters through local banks. The era of uninterrupted economic growth and fiscal surpluses, it seems, could be on the wane.

Yet even as nations await the full impact of a crisis that is reaching every corner of the world, Latin America is better placed today to weather the downturn than at any other time in the past half century, says Gray Newman, senior Latin America economist at Morgan Stanley in New York. Countries in the region have, overall, kept spending within budget and built up their currency reserves. Many have solved external imbalances and adopted flexible exchange-rate systems. " - CS Monitor

The downturn of the Mexican Peso has both good and bad outcomes to the EFL teacher.  Of course those that live in the country and depend on a regular Peso salary to pay for bills in America or other English speaking countries are suffering.  However, the general EFL teachers in Mexico depend on American currency, and the weak Peso increases the value of the dollar.


Philippines: "MANILA, Philippines - Ordinary workers will suffer most of the devastating consequences of the world economic slowdown, a Church-based study group claimed Tuesday.

He said the crisis will clamp down wages and social spending. In a bid to pass off skyrocketing production costs, employers would lay off workers, promote casual employment and suppress workers rights." - Gman News

The upward trend of many major Asian currencies have certainly brought much delight to many foreign teachers.  The Philippine Peso is no exception, like the Chinese and Japanese currencies, the Philippines currency trend could almost be placed as a perfect match.  However, the percent difference ranges less than 10% unlike a 20% to 25% in other counties. The Peso appears to be more stable compared to the Euro. 

Philippines has become a more competitive destination for students seeking English education the past few years, perhaps the boost in Japanese and Chinese currencies compared to the Philippine Peso will encourage the industry to grow the next few months.

Russia: MOSCOW, Oct. 23 (Xinhua) -- Russia has not got into the difficult situation brought by global financial crisis and may emerge from it a stronger economy, President Dmitry Medvedev said Thursday.
"I will tell you frankly that Russia has not yet fallen into this difficult turmoil and has chances to avoid it. It must avoid this," Medvedev said in a video blog posted on the Kremlin website.
The country has taken a series of measures, which would soon rebuild confidence in the financial sector and ensure a stable situation on the financial market, he said. " - Xinhua Net

Russia has been plagued for years by a poor economy and difficult working conditions for foreign language teachers.  However, the Russian Ruble, in the mist of the current situation is beginning to pick up.  Like the trend in the Philippines currency, the Russian Ruble is beginning to pick up at a pace similar to China, but not as intense.  Russia has always had a strong focus on English education, and now may actually grow during the next few months.


Saudi Arabia: "RIYADH (Reuters) - Some of the grand development plans in the world's biggest oil exporter could fall victim to falling crude prices, analysts say, but canny money management means Saudi Arabia has no reason to hit the panic buttons yet." - Vancouver Sun

Saudi Arabia has most definitely become a major destination for those English teachers wishing to make money.  With salaries ranging from $3000 to $6000 US a month now have experienced a 10% bonus in just 3 months.  The Riyal has had a steady increase that appears to even continue for weeks to come.  Teachers may be limited in freedoms in the country, however, only one look at your bank book may be the deciding factor for many teachers.

On the other hand, with the slowdown of the world economy, the oil rich country, may slow down its current production, thus slowing down the economy.

South Korea:  "SEOUL (AFP) — The South Korean won slumped for a third straight day Thursday to end at a 10-year low because of mounting concerns over a global financial crisis and plummeting stock prices here and abroad, dealers said...
The won has been Asia's worst performing major currency this year, falling from 937 to the US unit on January 2.- AFP

One of the worst hit Asian economies and one of the most EFL popular destinations.  Prior to the financial crisis, the Korean Won dropped almost 20% and now in the midst of the world turmoil, the Won plunged an additional 20% at times.  Some teachers loosing thousands of dollars when converting to foreign currencies.  Some teachers have begun considering packing their bags to find more prosperous jobs in Japan, Taiwan, China... fearing the worse for the once powerful Korean Won.


Taiwan: "President Ma Ying-jeou said Tuesday that he is confident that Taiwan will be able to weather the current global financial crisis." - Taiwan News

Taiwan, a popular EFL market for English teachers, due to the Taiwan New Dollar, teachers are benefiting.  Salaries have grown over the past few years and now with the falling Korean Won, Taiwan salaries are comparable to Korea. 

Thailand: " Kampanart Lohachareonvanich, the chairman of the Association of Securities Companies, said the bottom for the Thai share market probably came earlier this month, when the SET index fell to just 450 points as markets around the world nosedived due to the credit crisis.

''But it will be a long recovery,'' he said at an economics conference hosted by the Krungthep Turakij daily yesterday. " - Bangkok Post

Almost reverse gravity, the Thai Baht has rebounded.  In the first quarter of 2008, the baht had fallen, and now in the midst of the financial breakdown the Baht is back up to where it left off. 

The 15% bounce back is a definite advantage to those teachers in the country.  However, Thailand has taken a serious hit the past few years, with political problems, disasters and now neighboring Cambodia posing violent problems.  Further, the Thai government has made teaching EFL more difficult by requiring teachers to take standardized courses on Thai culture and a year long teacher training course.  Thailand may not be on the up list in the coming months, even though the Baht appears to be strengthening.

Vietnam: "China and Vietnam agreed to have exchange of economic experts to confer ways to tackle the current world financial crisis, said Visiting Vietnamese Prime Minister Nguyen Tan Dung here on Thursday.

Dung, who is on his first official China visit since he took office in 2006, said that China could not only stand up to the economic slowdown but also maintain steady economic growth, which made important contribution to the recovery of regional and world economy. " - Xinhua Net

Vietnam's EFL teaching industry has boomed the past few years, and now with increased Vietnam Dong currency, it makes it that much more of an incentive for the teacher.  Schools often offer medical, partial paid flights and housing much comparable to the Korean market.  Now with the strong Dong, expect to see an influx of foreign teachers.

Country currency growth comparisons:  The next chart compares each currency <click for larger image>.  Closing on the 22nd of October Japan holds the strongest value of over 16% above it's 3 month average compared to the Euro.  Hungary on the other hand holds the weakest currency value of almost -11% below it's 3 month average.  Brazil, the most fluctuating and unstable currency, bounced over 27% over the 3 months.  Fortunately, the Brazilian Real bounced up over the past several weeks, but still remains relatively low.  The most stable currency believe it or not is the Russian Ruble.  These numbers are compared to the Euro and are only deemed 'stable' or 'unstable' in reference to the Euro.  Fluctuations are as follows:

Brazil (BRL):27.80%
Cambodia (KHR):18.51%
China (CNY):18.24%
Hong Kong (HKD):19.35%
Hungary (HUF):17.35%
India (INR):8.46%
Indonesia (IDR):11.87%
Japan (JPY):24.24%
Laos (LAK):19.18%
Mexico (MXN):19.45%
Philippines (PHP):10.65%
Russia (RUB>:5.19%
Saudi Arabia (SAR):18.32%
South Korea (KRW):21.44%
Taiwan (TWD):10.97%
Thailand (THB>:16.56%
Vietnam (VND):18.28%

Conclusions:  The above country comparisons are based upon results from October 22nd and 23rd.  Currency history results are from http://www.oanda.com 'Inter Bank Rate.' Of course not all countries could be compared (Such as the U.A.E. or or Egypt).  Each country's current economic condition may vary depending on previous conditions prior to three months ago, and may change in the upcoming future.  Nothing is set in stone, the above comparisons are exactly that, comparisons.  It is not meant as a destination guide.
For raw data please select: RAW Data

1. Intro: Economic Woes and the EFL Community: The concern
2. Economic Woes and the EFL Community: Hardest Hit EFL Destination Countries (Current)
3. Economic Woes and the EFL Community: Hardest Hit English Speaking Home countries
4. Economic Woes and the EFL Community: Prepare and Protect
5. Economic Woes and the EFL Community: Concluding Remarks