Australian dollar

The Australian dollar (sign: $; code: AUD) is the currency of Australia (including its external territories Christmas Island, Cocos (Keeling) Islands, and Norfolk Island), and of three independent Pacific Island states, specifically Kiribati, Nauru, and Tuvalu. It was introduced on 14 February 1966 when the pre-decimal Australian pound, with subunits of shillings and pence, was replaced by the new decimal currency, the Australian dollar.

Within Australia, it is almost always abbreviated with the dollar sign ($), with A$ or AU$ sometimes used to distinguish it from other dollar-denominated currencies.[2][3] It is subdivided into 100 cents.

In 2016, the Australian dollar was the fifth most traded currency in world foreign exchange markets, accounting for 6.9% of the world's daily share (down from 8.6% in 2013)[4] behind the United States dollar, the European Union's euro, the Japanese yen and the United Kingdom's pound sterling.[5] The Australian dollar is popular with currency traders, because of the comparatively high interest rates in Australia, the relative freedom of the foreign exchange market from government intervention, the general stability of Australia's economy and political system, and the prevailing view that the Australian dollar offers diversification benefits in a portfolio containing the major world currencies, especially because of its greater exposure to Asian economies and the commodities cycle.[6]

The Australian dollar was legal tender of Papua New Guinea until 1 January 1976, when the Papua New Guinean kina became the sole legal tender there.

Australian dollar
Australian dollar  (English)
Australian $100 polymer front Australian $1 Coin
$100$1
ISO 4217
CodeAUD
Number036
Exponent2
Denominations
Subunit
 1/100cent
Symbol$
centc
Banknotes
 Freq. used$5, $10, $20, $50, $100
 Rarely used$1, $2
Coins
 Freq. used5c, 10c, 20c, 50c, $1, $2
 Rarely used1c, 2c
Demographics
Date of introduction14 February 1966
ReplacedAustralian pound
Official user(s) Australia
Unofficial user(s) Cambodia
 New Caledonia (France)
 Papua New Guinea
 Solomon Islands
 Tonga
 Vanuatu
 Zimbabwe[1]
Issuance
Central bankReserve Bank of Australia
 Websitewww.rba.gov.au
PrinterNote Printing Australia
 Websitewww.noteprinting.com
MintRoyal Australian Mint
 Websitewww.ramint.gov.au
Valuation
Inflation1.8% (Australia only)
 SourceReserve Bank of Australia, September 2018.
Pegged byTuvaluan dollar and Kiribati dollar at par

History

Australian $5 polymer front
The former $5 Australian note
2017 Australian ten dollar note obverse
The new 2017 $10 note
Australian $10 polymer front
The former $10 Australian note
Australian $20 polymer front
$20 Australian note
2018 Australian fifty dollar note obverse
$50 Australian note
Australian $100 polymer front
$100 Australian note

The previous currency, the Australian pound, was introduced in 1910, and had been officially distinct in value from the U.K.'s pound sterling since devaluation in 1931.[7] The pound was divided into 20 shillings and each shilling was divided into 12 pence, making a pound worth 240 pence.

With pounds, shillings and pence to be replaced by decimal currency on 14 February 1966, many names for the new currency were suggested. In 1963, the then-Prime Minister of Australia, Robert Menzies, a monarchist, wished to name the currency the royal. Other proposed names from a public naming competition included more exotic suggestions such as the austral, the oz, the boomer, the roo, the kanga, the emu, the koala, the digger, the zac, the kwid, the dinkum, and the ming (Menzies' nickname). Menzies' influence resulted in the selection of the royal, and trial designs were prepared and printed by the Reserve Bank of Australia. Australian treasurer and future Prime Minister, Harold Holt, announced the decision in Parliament on 5 June 1963. The royal would be subdivided into 100 cents, but the existing names shilling, florin and crown would be retained for the 10-cent, 20-cent and 50-cent coins respectively. The name royal for the currency proved very unpopular, with Holt and his wife even receiving death threats.[8] On 24 July Holt told the Cabinet the decision had been a "terrible mistake" and it would need to be revisited. On 18 September Holt advised Parliament that the name was to be the dollar, of 100 cents.[9][10]

The pound was replaced by the dollar on 14 February 1966[11] with the rate of conversion as two dollars per Australian pound, or one dollar for ten Australian shillings.

Since Australia was still part of the fixed-exchange sterling area, the exchange rate was fixed to the pound sterling at a rate of $1 = 8 U.K. shillings ($2.50 = UK £1).

In 1967, Australia effectively left the sterling area, when the pound sterling was devalued against the US dollar and the Australian dollar did not follow. It maintained its peg to the US dollar at the rate of A$1 = US$1.12.

On 27 September 2012, the Reserve Bank of Australia stated that it had ordered work on a project to upgrade the current banknotes. The upgraded banknotes would incorporate a number of new future proof security features[12] and include Braille dots for ease of use of the visually impaired. The first new banknotes (of the five dollar denomination) were issued from 1 September 2016, with the remaining denominations to be issued in the coming years.[13]

Coins

In 1966, coins were introduced in denominations of 1, 2, 5, 10, 20 and 50 cents. The initial 50-cent coins contained 80% silver and were withdrawn after a year when the intrinsic value of the silver content was found to considerably exceed the face value of the coins. One-dollar coins were introduced in 1984, followed by two-dollar coins in 1988 to replace the banknotes of that value, while the one- and two-cent coins were discontinued in 1991 and withdrawn from circulation. In commemoration of the 40th anniversary of decimal currency, the 2006 mint proof and uncirculated sets included one- and two-cent coins. In early 2013, Australia's first triangular coin was introduced to mark the 25th anniversary of the opening of Parliament House. The silver $5 coin is 99.9% silver, and depicts Parliament House as viewed from one of its courtyards.[14] Cash transactions are rounded to the nearest five cents. As with most public changes to currency systems, there has been a great amount of seignorage of the discontinued coins. All coins portray the reigning Australian Sovereign, Queen Elizabeth II, on the obverse, and are produced by the Royal Australian Mint.

Australia has regularly issued commemorative 50-cent coins. The first was in 1970, commemorating James Cook's exploration along the east coast of the Australian continent, followed in 1977 by a coin for Queen Elizabeth II's Silver Jubilee, the wedding of Charles, Prince of Wales and Lady Diana Spencer in 1981, the Brisbane Commonwealth Games in 1982, and the Australian Bicentenary in 1988. Issues expanded into greater numbers in the 1990s and the 21st century, responding to collector demand. Australia has also made special issues of 20-cent, one-dollar and two-dollar coins.

Current Australian 5-, 10- and 20-cent coins are identical in size to the former Australian, New Zealand, and British sixpence, shilling, and two shilling (florin) coins. In 1990 and 1993, the UK replaced these coins with smaller versions, as did New Zealand in 2006 – at the same time discontinuing the five-cent coin. With a mass of 15.55 grams (0.549 oz) and a diameter of 31.51 millimetres (1 14 in), the Australian 50-cent coin is one of the largest coins used in the world today. In circulation, the old New Zealand 5-, 10- and 20-cent coins were often mistaken for Australian coins of the same value, owing to their identical size and shape. Until the size of the New Zealand coins was changed in 2004, Australian coins below the dollar in value were in circulation in both countries. Still, some confusion occurs with the larger-denomination coins in the two countries; Australia's $1 coin is similar in size to New Zealand's $2 coin, and the New Zealand $1 coin is similar in size to Australia's $2 coin. As a result, Australian coins are occasionally found in New Zealand and vice versa.

Banknotes

First series

The first paper issues of the Australian dollar were issued in 1966. The $1, $2, $10 and $20 notes had exact equivalents in the former pound banknotes. The $5 note was issued in 1967, the $50 note was issued in 1973 and the $100 was issued in 1984.[15]

First polymer series

The first polymer banknotes were issued in 1988[16] by the Reserve Bank of Australia, specifically polypropylene polymer banknotes (produced by Note Printing Australia), to commemorate the bicentenary of European settlement in Australia. All Australian notes are now made of polymer. Australia was the first country to develop and use polymer banknotes.

Second Polymer series

A new series of banknotes has been introduced, starting with the $5 note from 1 September 2016.[17] A new $10 banknote has been released into circulation from 20 September 2017,[18] and a new $50 note has been released starting from 18 October 2018.[19] The new $20 note will be released in October 2019 and the new $100 note in 2020.[20]

Value

Most traded currencies by value
Currency distribution of global foreign exchange market turnover[5]
Rank Currency ISO 4217 code
(symbol)
% of daily trades
(bought or sold)
(April 2016)
1
United States dollar
USD (US$)
87.6%
2
Euro
EUR (€)
31.4%
3
Japanese yen
JPY (¥)
21.6%
4
Pound sterling
GBP (£)
12.8%
5
 Australian dollar
AUD (A$)
6.9%
6
Canadian dollar
CAD (C$)
5.1%
7
Swiss franc
CHF (Fr)
4.8%
8
Renminbi
CNY (元)
4.0%
9
Swedish krona
SEK (kr)
2.2%
10
New Zealand dollar
NZD (NZ$)
2.1%
11
Mexican peso
MXN ($)
1.9%
12
Singapore dollar
SGD (S$)
1.8%
13
Hong Kong dollar
HKD (HK$)
1.7%
14
Norwegian krone
NOK (kr)
1.7%
15
South Korean won
KRW (₩)
1.7%
16
Turkish lira
TRY (₺)
1.4%
17
Russian ruble
RUB (₽)
1.1%
18
Indian rupee
INR (₹)
1.1%
19
Brazilian real
BRL (R$)
1.0%
20
South African rand
ZAR (R)
1.0%
21
Danish krone
DKK (kr)
0.8%
22
Polish złoty
PLN (zł)
0.7%
23
New Taiwan dollar
TWD (NT$)
0.6%
24
Thai baht
THB (฿)
0.4%
25
Malaysian ringgit
MYR (RM)
0.4%
26
Hungarian forint
HUF (Ft)
0.3%
27
Saudi riyal
SAR (﷼)
0.3%
28
Czech koruna
CZK (Kč)
0.3%
29
Israeli shekel
ILS (₪)
0.3%
30
Chilean peso
CLP (CLP$)
0.2%
31
Indonesian rupiah
IDR (Rp)
0.2%
32
Colombian peso
COP (COL$)
0.2%
33
Philippine peso
PHP (₱)
0.1%
34
Romanian leu
RON (L)
0.1%
35
Peruvian sol
PEN (S/)
0.1%
Other 2.1%
Total[21] 200.0%
Euro exchange rate to AUD
The cost of one Euro in Australian Dollar.

In 1966, when the dollar was introduced, the international currency relationships were maintained under the Bretton Woods system, a fixed exchange rate system using a U.S. dollar standard. The Australian dollar, however, was effectively pegged to the British pound at an equivalent value of approximately 1 gram of gold.

The highest valuation of the Australian dollar relative to the U.S. dollar was during the period of the peg to the U.S. dollar. On 9 September 1973, the peg was adjusted to US$1.4875, the fluctuation limits being changed to US$1.485–US$1.490;[22] on both 7 December 1973 and 10 December 1973, the noon buying rate in New York City for cable transfers payable in foreign currencies reached its highest point of 1.4885 U.S. dollars to one dollar.[23]

On 12 December 1983, the dollar was floated, allowing its value to fluctuate dependent on supply and demand on international money markets. The decision was made on 8 December 1983 and announced on 9 December 1983.[24]

In the two decades that followed, its highest value relative to the US dollar was $0.881 in December 1988. The lowest ever value of the dollar after it was floated was 47.75 US cents in April 2001.[25] It returned to above 96 US cents in June 2008,[26] and reached 98.49 later that year. Although the value of the dollar fell significantly from this high towards the end of 2008, it gradually recovered in 2009 to 94 US cents.

On 15 October 2010, the dollar reached parity with the US dollar for the first time since becoming a freely traded currency, trading above US$1 for a few seconds.[27] The currency then traded above parity for a sustained period of several days in November, and fluctuated around that mark into 2011.[28] On 27 July 2011, the dollar hit a record high since floating. It traded at a $1.1080 against the US dollar.[29]

Some commentators speculated that the value of the dollar in 2011 was related to Europe's sovereign debt crisis, and Australia's strong ties with material importers in Asia and in particular China.[30]

Economists posit that commodity prices are the dominant driver of the Australian dollar, and this means changes in exchange rates of the Australian dollar occur in ways opposite to many other currencies.[31] For decades, Australia's balance of trade has depended primarily upon commodity exports such as minerals and agricultural products. This means the Australian dollar varies significantly during the business cycle, rallying during global booms as Australia exports raw materials, and falling during recessions as mineral prices slump or when domestic spending overshadows the export earnings outlook. This movement is in the opposite direction to other reserve currencies, which tend to be stronger during market slumps as traders move value from falling stocks into cash.

The Australian dollar is a reserve currency and one of the most traded currencies in the world.[6] Other factors in its popularity include a relative lack of central bank intervention, and general stability of the Australian economy and government.[32] In January 2011 at the World Economic Forum in Davos, Switzerland, Alexey Ulyukaev announced that the Central Bank of Russia would begin keeping Australian dollar reserves.[33]

Exchange rate policies

1983 ABC news report on the first day of trading with a floating Dollar.

Prior to 1983, Australia maintained a fixed exchange rate. The first peg was between the Australian and British pounds, initially at par, and later at 0.8 GBP (16 shillings sterling). This reflected its historical ties as well as a view about the stability in value of the British pound. From 1946 to 1971, Australia maintained a peg under the Bretton Woods system, a fixed exchange rate system that pegged the U.S. dollar to gold, but the Australian dollar was effectively pegged to sterling until 1967.

With the breakdown of the Bretton Woods system in 1971, Australia converted the traditional peg to a fluctuating rate against the US dollar. In September 1974, Australia valued the dollar against a basket of currencies called the trade weighted index (TWI) in an effort to reduce the fluctuations associated with its tie to the US dollar.[34] The daily TWI valuation was changed in November 1976 to a periodically adjusted valuation.

On 12 December 1983, the Australian Labor government led by Prime Minister Bob Hawke and Treasurer Paul Keating floated the dollar, with the exchange rate reflecting the balance of payments and other market drivers.

Legal tender

Australian banknotes are a legal tender throughout the Commonwealth of Australia and its territories, as provided in section 36(1) of the Reserve Bank Act 1959.

For legal tender of Australian coinage, as outlined in section 16 of the Currency Act 1965, the following limits are set out:[35]

  • 5c, 10c, 20c, and 50c (of any combination): for payments not exceeding $5
  • 1c and 2c coins (which have been withdrawn from circulation): for payments not exceeding 20 cents
  • One dollar and two dollar coins: for payments not exceeding 10 times the face value of a coin of the denomination concerned
  • Non-circulating ten dollar coins: for payments not exceeding $100
  • Coins of other denominations: no lower limit

Design and denominations

Australia was the first country in the world to have a complete system of banknotes made from plastic (polymer). These notes provide much greater security against counterfeiting. The polymer notes are cleaner than paper notes, are more durable and easily recyclable.

Australia's currency comprises coins of 5, 10, 20 and 50 cent and one and two dollar denominations; and notes of 5, 10, 20, 50 and 100 dollar denominations.

Many forms of currency were used in the Australian colonies after the arrival of the first European settlers in 1788. In the rough early conditions barter was necessary, and payment in commodities like rum sometimes replaced money in transactions. Some of the first official notes used in Australia were Police Fund Notes, issued by the Bank of New South Wales in 1816.

After 1901, when the Australian colonies federated into a single Commonwealth, the federal government became responsible for the currency. The Bank Notes Tax Act 1910 effectively brought private and state currencies to an end. In 1913 the first series of Australian notes was issued, based on the old British system of 12 pence to a shilling, 20 shillings to a pound.

In 1963, Australia initiated the change to decimal currency. More than 1000 submissions were made about the name of the new currency unit. The Prime Minister of the day, Sir Robert Menzies, proposed the 'royal'. The 'dollar' was eventually chosen as the name, and decimal currency was introduced on 14 February 1966.

Shortly after the changeover, substantial counterfeiting of $10 notes was detected. This provided an impetus for the Reserve Bank of Australia to develop new note technologies jointly with the Commonwealth Scientific and Industrial Research Organisation.

The revolutionary polymer notes were first introduced in 1988 with the issue of a commemorative $10 note,[36] marking Australia's bicentenary by featuring the theme of settlement. The note depicted on one side a young male Aboriginal person in body paint, with other elements of Aboriginal culture. On the reverse side was the ship Supply from the First Fleet, with a background of Sydney Cove, as well as a group of people to illustrate the diverse backgrounds from which Australia has evolved over 200 years.

  • The $100 note features world-renowned soprano Dame Nellie Melba (1861–1931), and the distinguished soldier, engineer and administrator General Sir John Monash (1865–1931).[37]
  • The $50 note features Aboriginal writer and inventor David Unaipon (1872–1967), and Australia's first female parliamentarian, Edith Cowan (1861–1932).[38]
  • The $20 note features the founder of the world's first aerial medical service (the Royal Flying Doctor Service of Australia), the Reverend John Flynn (1880–1951), and Mary Reibey (1777–1855), who arrived in Australia as a convict in 1792 and went on to become a successful shipping magnate and philanthropist.[39]
  • The $10 note features the poets AB "Banjo" Paterson (1864–1941) and Dame Mary Gilmore (1865–1962). This note incorporates micro-printed excerpts of Paterson's and Gilmore's work.[40] On 17 February 2017, the Reserve Bank revealed the design of the new $10 banknote[41].
  • The $5 note features Her Majesty Queen Elizabeth II and Parliament House, Canberra, the national capital. (Note that a special centenary issue of the $5 note featured Sir Henry Parkes and Catherine Helen Spence in 2001.)[42] In 2015–2016 there was a petition to feature Fred Hollows on a new $5 note, the outcome of this campaign is yet to be announced.[43] On 11 February 2016 it was announced that on 1 September 2016 a new $5 banknote would be released featuring a depiction of native Australian wattle and bird. On 12 April, the design of the new $5 banknote was released.[44][45]

Polymer note technology was developed by Australia, and Australia prints polymer banknotes for a number of other countries. In 1988, Australia introduced its first polymer bank note and in 1996, Australia became the first country in the world to have a complete series of polymer notes. Australia's notes are printed by Note Printing Australia, a wholly owned subsidiary of the Reserve Bank of Australia. Note Printing Australia prints polymer notes or simply supplies the polymer substrate[46] for a growing number of other countries including Bangladesh, Brunei, Chile, Indonesia, Kuwait, Malaysia, Mexico, Nepal, New Zealand, Papua New Guinea, Romania, Samoa, Singapore, Solomon Islands, Sri Lanka, Thailand and Vietnam. Many other countries are showing a strong interest in the new technology.

All Australian coins depict Queen Elizabeth II on the obverse, with different images on the reverse of each coin.

  • The $2 coin, which replaced the paper two dollar note in 1988, depicts an Aboriginal tribal elder set against a background of the Southern Cross and native grasstrees. (Designed by Horst Hahne)
  • The $1 coin, which replaced the paper $1 note in 1984, depicts five kangaroos. (Designed by Stuart Devlin)
  • The 50 cent coin carries the coat of arms of Australia: the six state badges on a central shield supported by a kangaroo and an emu, with a background of golden wattle, Australia's floral emblem (Designed by Stuart Devlin)
  • The 20 cent coin carries a platypus, one of only two egg-laying mammals in the world. It has webbed feet and a duck-like bill that it uses to hunt for food along the bottom of streams and rivers. (Designed by Stuart Devlin)
  • The 10 cent coin features a male lyrebird dancing. A clever mimic, the lyrebird inhabits the dense, damp forests of Australia's eastern coast. (Designed by Stuart Devlin)
  • The 5 cent coin depicts an echidna, or spiny anteater, the world's only other egg-laying mammal. (Designed by Stuart Devlin)
  • The 2 cent coin (withdrawn from circulation since 1992) depicted a frilled lizard. (Designed by Stuart Devlin)
  • The 1 cent coin (withdrawn from circulation since 1992) depicted a feather tailed glider (Designed by Stuart Devlin)

The 5, 10, 20 and 50 cent coins are made of cupronickel (75 percent copper and 25 percent nickel). The one and two dollar coins are made of aluminium bronze (92 percent copper, 6 per cent aluminium and 2 per cent nickel). The two dollar, one dollar, 50 and 20 cent circulating coins occasionally feature commemorative designs.

Australia's coins are produced by the Royal Australian Mint, which is located in the nation's capital, Canberra. Since opening in 1965, the Mint has produced more than 14 billion circulating coins, and has the capacity to produce more than two million coins per day, or more than 600 million coins per year. The Royal Australian Mint has an international reputation for producing quality numismatic coins, and won an international award for 'Best Silver Coin 2006' for its Silver Kangaroo coin design.

Australian currency tactile feature

In early 2015 the Reserve Bank of Australia announced that a tactile feature will be added to all new notes.[47] The tactile feature is an embossed feature to assist the vision-impaired in identifying the denomination. A similar feature is used on the Canadian currency.[48]

Current exchange rates

Current AUD exchange rates
From Google Finance: CAD CHF EUR GBP HKD JPY USD CNY INR
From Yahoo! Finance: CAD CHF EUR GBP HKD JPY USD CNY INR
From XE: CAD CHF EUR GBP HKD JPY USD CNY INR
From OANDA: CAD CHF EUR GBP HKD JPY USD CNY INR
From fxtop.com: CAD CHF EUR GBP HKD JPY USD CNY INR

See also

Other main currencies

References

  1. ^ Alongside Zimbabwean dollar (suspended indefinitely from 12 April 2009), Pound sterling, Euro, US Dollar, South African rand, Botswana pula, Indian rupee, Chinese yuan, and Japanese yen [1]. The U.S. Dollar has been adopted as the official currency for all government transactions.
  2. ^ McGovern, Gerry; Norton, Rob; O'Dowd, Catherine (2002). The Web content style guide: an essential reference for online writers ... FT Press. p. 104. ISBN 978-0-273-65605-0. Retrieved 30 July 2010.
  3. ^ The Canadian Style. Dundurn Press/Translation Bureau. 1997. ISBN 1-55002-276-8. Retrieved 30 July 2010.
  4. ^ Jeff Desjardins (29 December 2016). "Here are the most traded currencies in 2016". Business Insider. Retrieved 30 June 2017.
  5. ^ a b "Triennial Central Bank Survey Foreign exchange turnover in April 2016" (PDF). Triennial Central Bank Survey. Basel, Switzerland: Bank for International Settlements. 11 December 2016. p. 7. Retrieved 22 March 2017.
  6. ^ a b Yeates, Clancy (2 September 2010). "Aussie now fifth most traded currency". The Sydney Morning Herald. Retrieved 19 April 2011.
  7. ^ "Banknotes of the 1930s". Reserve Bank of Australia Museum. Reserve Bank of Australia. Retrieved 31 December 2015.
  8. ^ Richard Hughes, "Holt's folly: one royal we rejected", Sydney Morning Herald, 5 June 2013. Retrieved 21 December 2017
  9. ^ "The Royal Controversy". Reserve Bank of Australia Museum. Reserve Bank of Australia. Retrieved 31 December 2015.
  10. ^ The Age, 5 June 2013, Money, p.8
  11. ^ "Introducing the New Decimal Banknotes". Reserve Bank of Australia Museum. Reserve Bank of Australia. Retrieved 31 December 2015.
  12. ^ Media Release: R.B.A.: Upgrading Australia's Banknotes http://www.rba.gov.au/media-releases/2012/mr-12-27.html
  13. ^ The Next Generation Banknote Project http://www.rba.gov.au/publications/bulletin/2014/mar/1.html
  14. ^ ABC News Triangular coin celebrates Parliament House's birthday http://www.abc.net.au/news/2013-05-09/first-triangular-coin-celebrates-parliament-birthday/4679654
  15. ^ History of Banknotes http://banknotes.rba.gov.au/australias-banknotes/history/
  16. ^ "Wi-fi, dual-flush loos and eight more Australian inventions". BBC News. 8 November 2012.
  17. ^ "Next Generation of Banknotes: $5 Banknote Design Reveal". Reserve Bank of Australia. 12 April 2016.
  18. ^ "Next Generation of Banknotes: $10 Design Reveal". Reserve Bank of Australia. February 17, 2017.
  19. ^ "Next Generation of Banknotes: Circulation Date for the New $50 Banknote". Reserve Bank of Australia. September 5, 2018.
  20. ^ "Next Generation $20 Banknote Design Reveal". Reserve Bank of Australia. February 22, 2019.
  21. ^ The total sum is 200% because each currency trade always involves a currency pair; one currency is sold (e.g. US$) and another bought (€). Therefore each trade is counted twice, once under the sold currency ($) and once under the bought currency (€). The percentages above are the percent of trades involving that currency regardless of whether it is bought or sold, e.g. the U.S. Dollar is bought or sold in 87% of all trades, whereas the Euro is bought or sold 31% of the time.
  22. ^ World Currency Yearbook, 1984. p. 75. ISBN 0-917645-00-6.
  23. ^ "U.S. / Australia Foreign Exchange Rate". Retrieved 26 July 2011.
  24. ^ "20 years since Aussie dollar floated". Australian Broadcasting Corporation. 8 December 2003. Archived from the original on 11 October 2010. Retrieved 14 October 2010.
  25. ^ "Global risk weighs on Howard's agenda". CNN. 12 November 2001. Retrieved 14 October 2010.
  26. ^ "Dollar Falls Before RBA Meeting: New Zealand's Drops". Bloomberg. 30 June 2008. Retrieved 14 October 2010.
  27. ^ "Dollar hits parity vs US dollar". Reuters. 15 October 2010. Archived from the original on 18 October 2010. Retrieved 15 October 2010.
  28. ^ Davis, Bradley (4 November 2010). "Dollar hits new post-float high after US central bank move". The Australian. Archived from the original on 22 January 2011. Retrieved 25 January 2011.
  29. ^ "AUD/USD Slides After Topping 1.10 Level – Westpac". Retrieved 2 May 2011.
  30. ^ "Sky News: Aussie dollar hits new highs". Sky News. 28 March 2011. Retrieved 19 April 2011.
  31. ^ "Westpac Market Insights March 2011" (PDF). Westpac. p. 4. Archived from the original (PDF) on 7 March 2011. Retrieved 8 April 2011.
  32. ^ Dorsch, Gary (14 Feb 2006). "Analyzing the Dollar – Up, Down, and Under". SafeHaven.com.
  33. ^ "Russia to Keep Dollar Reserves From February". Davos, Switzerland: RIA Novosti. 26 January 2012. Retrieved 27 January 2012.
  34. ^ "1350.0 – Australian Economic Indicators, Mar 1998". Australian Bureau of Statistics. 8 December 2006. Retrieved 19 April 2011.
  35. ^ "RBA Banknotes: Legal Tender". Retrieved 2018-07-24.
  36. ^ Other Banknotes http://banknotes.rba.gov.au/australias-banknotes/other-banknotes/
  37. ^ $100 Banknote http://banknotes.rba.gov.au/australias-banknotes/banknotes-in-circulation/hundred-dollar/
  38. ^ $50 Banknote http://banknotes.rba.gov.au/australias-banknotes/banknotes-in-circulation/fifty-dollar/
  39. ^ $20 Banknote http://banknotes.rba.gov.au/australias-banknotes/banknotes-in-circulation/twenty-dollar/
  40. ^ $10 Banknote http://banknotes.rba.gov.au/australias-banknotes/banknotes-in-circulation/ten-dollar/
  41. ^ Australia, scheme=AGLSTERMS.AglsAgent; corporateName=Reserve Bank of. "Next Generation of Banknotes: $10 Design Reveal". Reserve Bank of Australia. Retrieved 2017-08-30.
  42. ^ $5 Banknote http://banknotes.rba.gov.au/australias-banknotes/banknotes-in-circulation/five-dollar/
  43. ^ "Fred Hollows for Aussie fiver?". Stuff. Retrieved 2016-01-27.
  44. ^ Australia, scheme=AGLSTERMS.AglsAgent; corporateName=Reserve Bank of. "Next Generation of Banknotes: Issuance Date for the New $5 Banknote | Media Releases". www.rba.gov.au. Retrieved 2016-02-11.
  45. ^ Australia, scheme=AGLSTERMS.AglsAgent; corporateName=Reserve Bank of. "Next Generation of Banknotes: $5 Banknote Design Reveal". Reserve Bank of Australia. Retrieved 2016-05-24.
  46. ^ "Paying with Polymer: Developing Canada's New Bank Notes" (PDF). Bank of Canada. 20 June 2011. p. 4. Retrieved 12 Aug 2015.
  47. ^ "Next Generation Banknotes: Additional Feature for the Vision Impaired". www.rba.gov.au (Press release). Media Office-Reserve Bank of Australia. 13 February 2015.
  48. ^ Haxton, Nance (19 February 2015). "RBA to introduce tactile banknotes after 13yo blind boy Connor McLeod campaigns for change". ABC. Retrieved 19 February 2015.
Notes

External links

Preceded by:
Australian pound
Reason: decimalisation
Ratio: 2 dollars = 1 pound
Currency of Australia, Christmas Island, Cocos Islands, Norfolk Island, Nauru, Kiribati, Tuvalu
1966 –
Succeeded by:
Current
Preceded by:
New Guinea pound
Reason: decimalisation
Ratio: 2 dollars = 1 pound
Currency of Papua New Guinea
1966 – 1975
Succeeded by:
Papua New Guinean kina
Reason: currency independence
Ratio: at par
Preceded by:
Australian pound
Reason: decimalisation
Ratio: 2 dollars = 1 pound
Currency of Solomon Islands
1966 – 1977
Succeeded by:
Solomon Islands dollar
Reason: currency independence
Ratio: at par
Australian one-dollar note

The Australian one-dollar note (or $1 bill) was introduced in 1966 due to decimalisation, to replace the 10-shilling note. The note was issued from its introduction in 1966 until its replacement by the one-dollar coin in 1984. Approximately 1.7 billion one-dollar notes were printed.

Australian one dollar coin

The Australian one dollar coin is the second-most-valuable circulation denomination coin of the Australian dollar after the two-dollar coin; there are also non-circulating legal-tender coins of higher denominations (five-, ten-, two-hundred-dollar coins and the one-million-dollar coin).

It was first issued on 14 May 1984 to replace the one-dollar note which was then in circulation, although plans to introduce a dollar coin had existed since the mid-1970s. The first year of minting saw 186.3 million of the coins produced at the Royal Australian Mint in Canberra.Three portraits of Queen Elizabeth II have featured on the obverse, the 1984 head of Queen Elizabeth II by Arnold Machin; between 1985 and 1998 the head by Raphael Maklouf; and since 1999 the head by Ian Rank-Broadley. The coin features an inscription on its obverse of AUSTRALIA on the right-hand side and ELIZABETH II on the left-hand side.

The reverse features five kangaroos. The image was designed by Stuart Devlin, who designed Australia's first decimal coins in 1966.

The one dollar and two dollar coins are legal tender up to the sum of not exceeding 10 times the face value of the coin concerned.

Australian pound

The Australian pound (symbol £) was the currency of Australia from 1910 until 14 February 1966, when it was replaced by the Australian dollar. As with other £sd currencies, it was subdivided into 20 shillings (symbol s), each of 12 pence (symbol d).

Australian ten-cent coin

The Australian ten-cent coin is a coin of the decimal Australian dollar. When the dollar was introduced as half of an Australian pound on 14 February 1966, the coin inherited the specifications of the pre-decimal shilling; both coins were worth one twentieth of a pound. On introduction it was the fourth-lowest denomination coin. Since the withdrawal from circulation of the one and two cent coins in 1992, it has been the second-lowest denomination coin in circulation.

For the first year of minting (1966), 30 million coins were produced at the British Royal Mint (then in London), and 11 million at the Royal Australian Mint in Canberra. Since then, all coins have been produced in Canberra, with the exception of 1981 when 40 million coins from the Royal Mint's new headquarters in Llantrisant, Wales supplemented the 76.1 million produced in Canberra.Years without issue were 1986, 1987, 1995 and 1996. The lowest mintage was in 2011, when 1.7 million coins were issued. There has been one commemorative issue for this denomination, the 50th anniversary of decimal currency in 2016.The image of a male superb lyrebird (Menura novaehollandiae) is displayed on the reverse of all ten-cent coin. It was designed by Stuart Devlin, who designed the reverses of all of the coins of the Australian dollar introduced in 1966.The obverse has displayed different designs featuring the head of Elizabeth II, Queen of Australia: from 1966 to 1984, the head by Arnold Machin; from 1985 to 1998, the head by Raphael Maklouf; from 1999 to 2015, and since 2017, the head by Ian Rank-Broadley. The obverse of these coins has the inscription AUSTRALIA and the year-of-issue on the right hand side, and ELIZABETH II on the left hand side. In 2016, (the 50th anniversary of decimal currency), the obverse was designed by G. K. Gray.Five-cent, ten-cent, twenty-cent, and fifty-cent coins are legal tender up to the sum of $5.

Banknotes of the Australian dollar

The banknotes of the Australian dollar were first issued by the Reserve Bank of Australia on 14 February 1966, when Australia adopted decimal currency. This currency was a lot easier for calculating cost rather than the British, Pound, Shilling and Pence system.

The $5 note was not issued until May 1967.

Coins of Australia

Australian coins refers to the coins which are or were in use as Australian currency. During the early days of the colonies that formed Australia, foreign currency was used, but in 1910, a decade after federation, Australian coins were introduced. Australia used pounds, shillings and pence until 1966, when it adopted the decimal system with the Australian dollar divided into 100 cents. With the exception of the first Proclamation Coinage and the holey dollars, all Australian coins remain legal tender despite being withdrawn from circulation.

Coins of the Australian dollar

Coins of the Australian dollar were introduced on 14 February 1966, although they did not at that time include one-dollar or two-dollar coins. The dollar was equivalent in value to 10 shillings in the former currency (half of a pound).

Currency

A currency (from Middle English: curraunt, "in circulation", from Latin: currens, -entis), in the most specific use of the word, refers to money in any form when in use or circulation as a medium of exchange, especially circulating banknotes and coins. A more general definition is that a currency is a system of money (monetary units) in common use, especially for people in a nation. Under this definition, US dollars (US$), British pounds (£), Australian dollars (A$), European euros (€), Russian rubles (₽) and Indian Rupees (₹) are examples of currency. These various currencies are recognized as stores of value and are traded between nations in foreign exchange markets, which determine the relative values of the different currencies. Currencies in this sense are defined by governments, and each type has limited boundaries of acceptance.

Other definitions of the term "currency" are discussed in their respective synonymous articles banknote, coin, and money. The latter definition, pertaining to the currency systems of nations, is the topic of this article. Currencies can be classified into two monetary systems: fiat money and commodity money, depending on what guarantees the currency's value (the economy at large vs. the government's physical metal reserves). Some currencies are legal tender in certain political jurisdictions. Others are simply traded for their economic value. Digital currency has arisen with the popularity of computers and the Internet.

Currency pair

A currency pair is the quotation of the relative value of a currency unit against the unit of another currency in the foreign exchange market. The currency that is used as the reference is called the counter currency, quote currency or currency and the currency that is quoted in relation is called the base currency or transaction currency.

Currency pairs are generally written by concatenating the ISO currency codes (ISO 4217) of the base currency and the counter currency, and then separating the two codes with a slash. Alternatively the slash may be omitted, or replaced by either a dot or a dash. A widely traded currency pair is the relation of the euro against the US dollar, designated as EUR/USD. The quotation EUR/USD 1.2500 means that one euro is exchanged for 1.2500 US dollars. Here, EUR is the base currency and USD is the quote currency(counter currency). This means that 1 Euro can be exchangeable to 1.25 US Dollars.

The most traded currency pairs in the world are called the Majors. They involve the currencies euro, US dollar, Japanese yen, pound sterling, Australian dollar, Canadian dollar, and the Swiss franc.

Dollar

Dollar (often represented by the dollar sign $) is the name of more than 20 currencies, including those of Australia, Canada, Hong Kong, Jamaica, Liberia, Namibia, New Zealand, Singapore, Taiwan, and the United States. The U.S. dollar is also the official currency of the Caribbean Netherlands, East Timor, Ecuador, El Salvador, the Federated States of Micronesia, the Marshall Islands, Palau, and Zimbabwe.

One dollar is generally divided into 100 cents.

Kiribati dollar

The dollar is the currency of Kiribati. It is pegged at 1:1 ratio to the Australian dollar. Coins were issued in 1979 and circulate alongside banknotes and coins of the Australian dollar.

List of circulating currencies

This list contains the 180 currencies recognized as legal tender in United Nations (UN) member states, UN observer states, partially recognized or unrecognized states, and their dependencies. Dependencies and unrecognized states are listed here only if another currency is used in their territory that is different from the one of the state that administers them or has jurisdiction over them.

New Guinean pound

The New Guinean pound was the currency of the Australian Territory of New Guinea between 1915 and 1966, and replaced the New Guinean mark when Australia occupied the former German colony at the end of World War I. The New Guinean pound was subdivided into 20 shillings, each of 12 pence, and was equal to the Australian pound. The Australian currency circulated alongside coins issued specifically for New Guinea between 1929 and 1945. New Guinea coins ceased to be produced in 1945, and production of Papua New Guinea resumed in the 1970s.

Between 1942 and 1945, the Oceania pound circulated, issued by the Japanese occupiers. Australian coins and banknotes resumed circulation after the war and continued until the Papua New Guinean kina, which was introduced on 19 April 1975, replaced the Australian dollar at par. The Australian dollar continued to be legal tender in PNG until 1 January 1976.

New Hebrides franc

The Franc was the currency of the Anglo-French Condominium of the Pacific island group of the New Hebrides (which became Vanuatu in 1980). It circulated alongside British and later Australian currency. The New Hebrides franc was nominally divided into 100 Centimes, although the smallest denomination was the 1 franc. Between 1945 and 1969, it was part of the CFP franc.

Papua New Guinean kina

The kina (ISO 4217 currency code: PGK, the currency symbol: K) is the currency of Papua New Guinea. It is divided into 100 toea. The kina was introduced on 19 April 1975, and circulated along with the Australian dollar until 1 January 1976, when the dollar ceased to be legal tender.

The name kina is derived from Kuanua language of the Tolai region, referring to a callable pearl shell used widely for trading in both the Coastal and Highlands areas of the country.

Perth Mint

The Perth Mint is Australia's official bullion mint and wholly owned by the Government of Western Australia. Established on 20 June 1899, two years before Australia's Federation in 1901, the Perth Mint was the last of three Australian colonial branches of the United Kingdom's Royal Mint (after the now-defunct Sydney Mint and Melbourne Mint) intended to refine gold from the gold rushes and to mint gold sovereigns and half-sovereigns for the British Empire. Along with the Royal Australian Mint, which produces coins of the Australian dollar for circulation, the Perth Mint is the older of the two mints issuing coins that are legal tender in Australia.

Reserve Bank of Vanuatu

The Reserve Bank of Vanuatu is the central bank of Vanuatu. It was initially known as the Central Bank of Vanuatu after the nation's independence from France and the United Kingdom.

The bank began operations on 1 January 1981 and was initially responsible for currency exchange. It established the Vatu as the national currency to replace the circulation of the New Hebrides franc and Australian dollar. The bank also replaced the role of the Banque Indosuez Vanuatu.

The institution's name was changed to the Reserve Bank of Vanuatu in May 1989 and its responsibility over the national banking industry was expanded.

Tuvaluan dollar

The dollar is the currency of Tuvalu. From 1966 to 1976, Tuvalu officially used the Australian dollar. In 1976, Tuvalu began issuing its own coins for circulation, although these circulate alongside Australian coins and Tuvalu continues to use Australian banknotes. Similar to the Faroese króna's relationship to the Danish krone and the Panamanian balboa's relationship to the United States dollar, the Tuvaluan dollar is not an independent currency, but a variation of the Australian dollar. The official international currency code is TVD.There is no central monetary institution or central bank in Tuvalu. The National Bank of Tuvalu performs some monetary functions for the government of Tuvalu including the holding of government accounts and foreign assets.Other currencies used in Tuvalu have been the Pound Sterling, prior to the introduction of the Australian dollar, as well as the US dollar, during the World War II American occupation of the islands. Gilbert and Ellice Islands banknotes have also been used on in Tuvalu, These notes were cashier's cheques backed in Pounds rather than an official, independent currency. The yen-backed Oceania pound was used in parts of the Gilberts (now Kiribati), but Japanese influence never actually reached the Ellice Chain (now Tuvalu).

Wallis Island, New South Wales

Wallis Island is a nature reserve near Forster, New South Wales, Australia. It was created in January 1983 and covers an area of 584ha (454.5 acres). It sits within Wallis Lake, just south of the Coolongolook River. It is known for the Forster (Wallis Island) Airport and a $20 million Australian dollar chateau which was bought for $290,000 in 1996.

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