As of the beginning of 2024, notable shifts in immigration policies across the UK, Australia, and Canada have grabbed considerable attention. However, when it comes to the decisions of students regarding studying abroad, these policy changes are not the sole influencing factors. Another significant consideration for students is the recent strengthening of both the UK pound sterling and the US dollar. The appreciation in value renders studying in these countries more costly compared to alternative study destinations.
In recent months, the UK market has exhibited a strengthening trend in comparison to currencies from Nigeria, Turkey, Pakistan, and Ghana. Despite this, the following countries remain pivotal as sources for international students in the UK:
- Nigeria: 112%
- Turkey: 67%
- Pakistan: 31%
- Ghana: 25%
- Japan: 15%
It is challenging to predict the precise impact of the pound sterling’s performance on international students. Moreover, it is noteworthy that the currency has outperformed 92% of world currencies this year, reflecting a strong economy. Additionally, the deceleration of inflation mitigates the overall expense for current international students, facilitating their ability to afford the costs of living and education in the UK.
Reports indicate that the Indian rupee has reached a record low, contrasting with the increased strength of the US dollar. Such fluctuations in currency values directly influence students’ decisions regarding studying abroad. For instance, if the currency of a student’s home country depreciates, studying in another nation becomes comparatively more expensive. This effect, however, is less pronounced for students with ample financial resources, while those with limited means may find it increasingly challenging to pursue studies abroad.
The most disruptive scenario occurs when a student’s currency weakens simultaneously with high inflation or during an economic crisis. For example, as of February 2024:
- Families in Nigeria struggle with both a weakened currency and the highest inflation rate since 1996, at 31.7%.
- In Egypt, substantial increases in food prices (51%), transport (17.6%), and housing (10%) are impacting household expenditures.
- In Iran, although the inflation rate is gradually decreasing, it remained at 35.8% in February.
When it comes to educators in the UK and US detecting a negative impact from their strong currency relative to those in other economies, the answer is that changes in student demand may take years rather than weeks or months.
