Reserve Bank of Australia

The Reserve Bank of Australia (RBA) is the country's central bank and banknote issuing authority. It has had that role since 14 January 1960, when the Reserve Bank Act 1959 removed the central banking functions from the Commonwealth Bank.[2]

The bank has the responsibility of providing services to the Government of Australia in addition to also providing services to other central banks and official institutions.[3] It currently consists of the Payments System Board, which governs the payments system policy of the bank, and the Reserve Bank Board, which governs all other monetary and banking policies of the bank.[4]

Both boards consist of members of both the bank, the Treasury, other Australian government agencies, and leaders of other institutions that are part of the economy.[4][5] The structure of the Reserve Bank Board has remained consistent ever since 1951, with the exception of the change in the number of members of the board.[2] The governor of the Reserve Bank of Australia is appointed by the Treasurer and chairs both the Payment Systems and Reserve Bank Boards and when there are disagreements between both boards, the governor resolves them.[4][6]

From the middle of the 19th century into the 1890s, the prospects of a national bank forming grew. In 1911, the Commonwealth Bank was established, but did not have the authority to print notes, which was a power that was still reserved to the Treasury. A movement toward reestablishing the gold standard occurred after World War I, with John Garvan leading various boards in contracting the money supply on the route to doing so, and the gold standard was instituted for both the British pound sterling and the Australian pound in 1925.[7]

During the Great Depression, the Australian pound became devalued, no longer worth the same as the pound sterling, and formally departed from the gold standard with the Commonwealth Bank Act of 1932.[8] Legislation in 1945 led to regulation of private banks which H.C. Coombs was opposed to, and when he became governor in 1949, he gave them more overall control over their institutions.[2][7] When the monetary authorities implemented the advice of Coombs to have a flexible interest rate, it allowed the bank to rely more on open market operations.[7] In 1980 the issue of short-term government bonds – Treasury notes of 13 and 26 weeks duration – changed from a tap system, in which the price was set, to a tender system in which the volume of stock was set and the price determined by the market. Soon afterwards the tender system was extended to the issue of longer-term government bonds.

The float of the Australian dollar happened in 1983, around the same period of time that the financial system in Australia was deregulated. Administration of the banks was transferred in 1998 from the bank to the Australian Prudential Regulation Authority and the Payments System Board was created, while the bank was given power within the board in the same year.[2] The current governor of the Reserve Bank is Philip Lowe, who succeeded Glenn Stevens as governor on 18 September 2016.[9]

Reserve Bank of Australia
Reserve Bank of Australia logo
RBA Building
RBA headquarters, 65 Martin Place, Sydney
HeadquartersSydney, New South Wales, Australia
Coordinates33°52′05″S 151°12′42″E / 33.868086°S 151.211749°ECoordinates: 33°52′05″S 151°12′42″E / 33.868086°S 151.211749°E
Established14 January 1960
GovernorPhilip Lowe
Central bank ofAustralia
CurrencyAustralian dollar
AUD (ISO 4217)
Reserve requirementsNone
Interest rate target1.5%[1]
Websitewww.rba.gov.au

History

Mid 19th century–1924

Andrewfisher2
Prime Minister Andrew Fisher, whose government created a commercial bank owned by the government, but not a central bank.

The proposition of a national bank in Australia began to be raised in the middle of the 19th century. This interest accelerated significantly in the 1890s due to an austere collapse of the financial and banking sectors at the beginning of that decade. The Australian Labor Party consequently formed during the same decade and proposed a bank should be formed, which would be a protected and cheap way of having financial services. The party designed a platform in 1908 for a "Commonwealth Bank", which would be a combination of both a commercial and central bank.[7]

Regardless, Fisher's Labor government introduced legislation in 1911 for a government-owned commercial bank, without a complete central banking component. He stated that "Time and experience will show how its functions for usefulness may be extended [towards central banking]." The only function at the time that made the bank characteristic of a central one was that it was the banker to the Australian government, in addition to it being the same for the states. For the time being, the Treasury of Australia maintained the role of issuing bank notes through the Australian Notes Act 1910.[7]

The Commonwealth Bank of Australia gradually developed into the central bank of Australia. In response to the disruption of trade during World War I (1914–1918) the Commonwealth Bank began to manage the debt of the Australian government. Nevertheless, at the end of the war, the bank continued to have a primary role as a savings and trading bank. World War I had caused the currency of Australia to move away from the gold standard, in order to fund a great increase of government spending, as did the United Kingdom and other parts of the British Empire.

Gold Bars
ANB Board member John Garvan led the movement toward reestablishing the gold standard.

The value of the Australian pound remained tied to the pound sterling. Inflation in Australia thus increased, less than in Britain, but more than in the United States. The case for a central bank was increased by the need for the government to cut spending after the war to reduce its debt. Commonwealth Bank Governor Denison Miller had been arguing for the issue of Australian currency to be switched from the treasury to the bank, as it had more staff and more monetary knowledge.[7]

The Australian Notes Board (ANB) was created in 1920 and partially acceded to the request of Miller, in having four directors, with the governor of the bank being an ex officio member.[2] The ANB began to follow a policy of board member John Garvan, in contracting the money supply, with the goal of reducing prices so that free convertibility of the Australian pound to gold could be re-established at pre-war rates, that is return to the former gold standard.

This was accomplished by refusing the exchange of notes for gold and it was hoped that this would lower domestic prices and raise the exchange rate for the Australian pound. When gold arrived from New York the government sold securities in order to diminish the effect of monetary expansion, therefore executing the first open market operations in the history of Australia and thus the first attempt of central banking.[7]

1924–present

The Department of Treasury issued notes until 1924, when this responsibility was transferred to the Commonwealth Bank.[2] The ANB was abolished by the Commonwealth Bank Act 1924, due to Treasurer and Country Party Leader Earle Page wanting to end the monetary contraction which particularly hurt his farming constituents, who were as a result receiving reduced export prices.[7] The new Board of Directors replacing it,[2] which was composed of various areas of the industry, soon appointed Garvan chairman, and thus he continued his policies. In 1925, both the pound sterling and Australian pound returned to the pre-war gold standard. The primary role of the Commonwealth Bank continued to be a savings and trading bank, even though the government attempted to make the bank into a central bank through its actions in 1924.[7]

Legislation was introduced to the Parliament at the climax of the Great Depression, in May 1930, by Treasurer E.G. Theodore, to transfer central banking powers from the Commonwealth Bank to a new central bank, but this failed.[7] The Australian pound was devalued in 1931 and it ceased to be tied to the pound sterling. The Reserve Bank departed from the gold standard with the Commonwealth Bank Act 1932, which made the notes no longer exchangeable into gold and allowed the bank not to keep any gold reserves.[8] The monetary policy of the bank from 1931 until the early 1970s had been to keep a stable exchange rate with the pound sterling.[7]

Through the new Commonwealth Bank Act and the Banking Act 1945, the board was replaced by a six-member council, consisting of bank and treasury officials. It additionally formalised the bank's administrative powers of monetary and banking policy and exchange control and also stated the governor was responsible for managing the bank.[2] Highly debated legislation in 1945 caused high amounts of regulation on private banks, which later-Governor H.C. Coombs was opposed to, along with his opposition to bank nationalisation in 1947.[7] When he became governor in 1949, he allowed private banks to have more control over their liquidity and attempted to introduce market-based monetary policy.[2][7] He also warned of the possibility of stagflation in 1959.[7]

Legislation in 1951, substituted the council by a 10-member board which included the governor, deputy governor and the secretary to the treasury. The board took over the management of the bank from the governor. The Reserve Bank Act 1959 (23 April 1959) took out the part of the Commonwealth Bank that executed central bank functions and placed it into the new Reserve Bank, while the commercial and savings bank functions stayed with the Commonwealth Bank.[2] This finally created a separate central bank for Australia in 1959, which took effect 14 January 1960, many years after several other nations already had one and similar to the early proposal by Treasurer Theodore.[2][7]

In the mid-1960s, monetary authorities accepted Coombs' conclusions and allowed a flexible interest rate, making it easier for the bank to rely on open market operations.[7] The Exchange Control was abolished after the float of the Australian dollar occurred in 1983. In the five years after the Campbell Committee probe, 1979–1984, the financial system in Australia became deregulated. Another probe was the Wallis Committee in 1996, which took effect in 1998. The effects were the transfer of overseeing the banks from the RBA to the Australian Prudential Regulation Authority (APRA) and the creation of the Payments System Board (PSB), which would attempt to maintain the safety and performance of the payments system. The bank was given powers within the PSB through additional legislation in 1998.[2]

In August 1996, then Governor-designate Ian Macfarlane and the Treasurer issued a Statement on the Conduct of Monetary Policy which restated the roles of the Reserve Bank and the Government of Australia. It affirmed government endorsement of the Reserve Bank's inflation objective, which was introduced in 1993. A change of government in December 2007 led to another Statement, which was issued by both former Treasurer Wayne Swan and Reserve Bank Governor Glenn Stevens. This amends previous statements by giving the bank independence and encourages transparency and communication.[2]

Securency scandal

Since 2007, the RBA's reputation has been affected by the 'Securency' or Note Printing Australia scandal. These RBA subsidiaries were involved in bribing overseas officials so that Australia might win lucrative polymer note-printing contracts. Australian press coverage, which continued into late 2011, reflects concerns with the apparent laxity and tardiness of corrective actions undertaken by relevant RBA board members and officials. The matters were not reported to the Federal Police in 2007, although they have been since, while in 2011 it was revealed that the RBA had to correct inaccurate evidence previously given to parliamentary committees.

In July 2014, WikiLeaks released a copy of a court order prohibiting publication throughout Australia of information that "reveals, implies, suggests or alleges" corruption involving specifically named past and present high-ranking Malaysian, Indonesian, and Vietnamese officials in relation to the Note Printing Australia bribery allegations.[10]

Roles and responsibilities

Reserve Bank of Australia - Canberra
Reserve Bank of Australia in Canberra

It is currently governed by the Reserve Bank Act 1959, which was approved by Parliament. The Reserve Bank Board's duty stated in the Act, within its outlined boundaries, is to ensure that the bank's monetary and banking policy is used to help the Australian population. This should be accomplished through consultation with the government and so in the Reserve Bank Board's opinion that its powers are used to help with:[3]

  1. the stability of the currency of Australia;
  2. the maintenance of full employment in Australia; and
  3. the economic prosperity and welfare of the people of Australia.[3]

In practice the Reserve Bank concentrates on the first objective, that is to control inflation through monetary policy. The current objective is a policy of inflation targeting aimed at maintaining the annual inflation rate at between "2–3 per cent, on average, over the cycle". This target was first set in 1993 by the then Reserve Bank Governor Bernie Fraser and was then formalised in 1996 by the then Treasurer Peter Costello and incoming Reserve Bank Governor Ian Mcfarlane.[2]

The Reserve Bank gives banking and registry services to agencies of the government, to other central banks, and other official institutions. The assets of the bank include the gold and foreign exchange reserves of Australia, which is estimated to have a net worth of A$101 billion.

Nearly 94% of the RBA's employees work at its headquarters in Sydney and at the Business Resumption Site. The remainder of the total 926 staff work in Adelaide, Brisbane, Canberra, Melbourne, Perth, London and New York City. A wholly owned subsidiary of the bank is Note Printing Australia, which employs 257 other workers, and which manufactures the Australian dollar and other securities, for markets both in and outside of Australia.[3]

The Payments System Board fills the role of deciding on the bank's payments system policy and the Reserve Bank Board is responsible for all other monetary and banking policies of the bank. Conflicts between the two Boards do not occur often and when they do, they are resolved by the governor.[4]

Reserve Bank Board

The Reserve Bank Board consists of nine members in total. These members include the three ex officio members of the board, consisting of the Governor of the Reserve Bank, who is Chair of the Board, the Deputy Governor of the Reserve Bank, who is the Deputy Chair of the Board, and the Secretary to the Treasury.

In addition, the board is composed of six external members who are appointed by the Treasurer for a period of five years. According to section 17(1) of the Reserve Bank Act, members of the board are not allowed to be a director, officer, or employee of an institution that is authorised to take in deposits.[5] Excluding changes in the number of directors, the structure of the board of directors has remained unchanged since 1951.[2]

Australian Treasury
One ex officio member of the board is the Secretary to the Treasury (Treasury Department building seen here in Canberra)

The current members of the board of directors are:[5]

Name Office (if applicable) Term begins Term endsA
Ex officio members
Philip Lowe Governor of the Reserve Bank 18 September 2016 17 September 2023
Guy Debelle Deputy Governor of the Reserve Bank 18 September 2016 17 September 2021
Philip Gaetjens Secretary to the Treasury 1 August 2018 Indefinite
External members
John Akehurst 31 August 2007 30 August 2017
Kathryn Fagg 7 May 2013 6 May 2018
Ian Harper 31 July 2016 30 July 2021
Allan Moss 2 December 2015 1 December 2020
Heather Ridout 14 February 2012 13 February 2017
Catherine Tanna 30 March 2011 29 March 2016

The board normally meets eleven times each year, on the first Tuesday of each month except January. Every year, the board meets at least once in Melbourne, usually in the first six months of the year. The board occasionally also meets in other Australian capitals. Five members of the board must meet in order to constitute a quorum, and the meeting must be chaired by the governor, or the deputy governor in his absence.

The board usually forms a consensus without a need for structured voting on the issues at hand. Meetings of the board are held in the boardroom of the Reserve Bank's Head Office in Sydney or the equivalent in other regional offices of the bank. The meetings begin at 9.00 am and continue for three and a half hours, with minutes published two weeks after the meeting is held.[5]

Payments System Board and the ACCC

The Reserve Bank Act 1959 allows the Payments System Board to decide the Reserve Bank's payment systems policy. This is done so it can command risk and to aid in competitiveness and balance in the financial system. The bank's power through the Payment Systems Act 1998 allows it to regulate any payment system and can create binding rules for security and performance in the system. If members of a payment system are at odds over issues of market risk, admission, safety, and rivalry, the RBA can additionally administer arbitration with the consent of those involved. The Reserve Bank is also permitted to gather information from a payment system or participants thereof. The bank was also given the power to regulate the competition of transactions in August 2001.[4]

The Payment Systems and Netting Act 1998 gives the board power in areas of the law that were previously uncertain. It removed the zero hour rule that allowed a bankruptcy to date a bankruptcy the previous midnight and the Act made it so payments the same day could not be undone. Before the removal of the zero hour rule, the Real Time Gross Settlement system had been violated because payments in the system should inherently not be reversed. Some payments systems had previously agreed to pay and receive obligations to the whole system, rather than merely maintaining their own. But in the event of a bankruptcy, the bankrupt institution did not pay what it owed back to the solvent parties, while they had to pay their dues to the failed bank. This was later changed, when cheques were deemed void if the bankrupt institution doesn't have the funds to back them up, after the Cheques Act 1986 was amended in 1998. The Trade Practices Act 1974 generally does not allow competitors to make cooperative agreements, but if the Australian Competition and Consumer Commission (ACCC) is permitted to make exceptions for competitors making agreements among themselves. The ACCC and the Payments Systems Board are encouraged to work together regarding access and rivalry through the Payment Systems (Regulation) Act 1998.[4]

Members of the Payment Systems Board are defined by Section 25A of the Reserve Bank Act 1959, with three of the members being ex officio or representatives of another organisation. The governor of the Reserve Bank of Australia is the Chairman of the Payments System Board, there is one representative of the RBA, and there is one representative of the Australian Prudential Regulation Authority (APRA). In addition, there are up to five other members of the board that are appointed by the Treasurer for a term up to five years in length. They meet once per quarter, with five members forming a quorum, and one meeting per year is generally held in Melbourne, while the rest are held in Sydney. The Chairman is to meet with the Chairman of the ACCC at least once annually on issues of interest to both parties in the payments system, in addition to members of both organisations consulting over issues that are mutually important.[4]

The current members of the Payments System Board are:[4]

Name Office (if applicable) Term begins Term endsA
Ex officio or representative members
Philip Lowe Chairman of the Board (RBA Gov.) 18 September 2016 17 September 2023
Michele Bullock Deputy Chairman of the Board (RBA Rep.) 29 October 2016 indefinite
Wayne Byres APRA Representative 9 July 2014 indefinite
Other members
Gina Cass-Gottlieb 15 July 2013 14 July 2018
Paul Costello 15 July 2013 14 July 2018
Catherine Walter 3 September 2007 2 September 2017
Brian Wilson 15 November 2010 14 November 2020

Governors and their roles

H. C. Coombs
H. C. Coombs is the only governor to have headed both the Commonwealth Bank and the Reserve Bank of Australia

The governor of the Reserve Bank of Australia is the most senior position in the Reserve Bank of Australia. The governor of the Commonwealth Bank of Reserve Bank of Australia was both an ex officio member of the Notes Board from 1920 to 1924 and of the eight directors of the Commonwealth Bank from 1924 to 1945. The Commonwealth Bank and Bank Acts in 1945 clearly stated the governor's responsibilities of managing the bank. In 1951, legislation established a 10-member board which the governor is a member of. The bank has maintained a similar structure ever since the 1951 legislation.[2]

The governor is required by the Reserve Bank Act 1959 to keep in contact with the Secretary on matters concerning both the Treasury and Reserve Bank and vice versa. It is also mandated that the board inform the government of the bank's monetary and banking policy, which is often accomplished through the governor's meetings with the Treasurer. Since 1996, the governor and other senior members of the bank have appeared twice annually before the House of Representatives Standing Committee on Economics to explain the conduct of the bank.[11] The Reserve Bank governor is appointed to a term of up to seven years by the Treasurer and are eligible to be reappointed at the end of their term.[6] The governor is the chairman of both the Payment Systems Board and the Reserve Bank Board and therefore resolves any disputes that occur between the two entities.[4]

The longest-serving governor, if his service to both the Commonwealth Bank and the Reserve Bank of Australia are included, is H.C. Coombs, who served nineteen years and six months combined.[9] He is regarded by some as one of the most committed anti-inflationists in government throughout the 1950s and 1960s.[7] The longest-serving Commonwealth Bank governor is Sir Ernest Riddle, who served eleven years and four months, while the longest-serving Reserve Bank governor is Ian Macfarlane, who served ten years. The shortest-serving governor by many years is James Kell, who served 2 years for the Commonwealth Bank.[9]

Key

* Died in office

Governors

# Governor Post-Nomonals Start End Ref
Governors of the Commonwealth Bank of Australia
1 Sir Denison Miller KCMG June 1912 June 1923 [9][12]
2 James Kell October 1924 October 1926 [9]
3 Sir Ernest Riddle October 1926 February 1938 [9][13]
4 Sir Henry Sheehan CBE February 1938 March 1941 [9][14]
5 Hugh Armitage CMG July 1941 December 1948 [9][15]
6 Herbert Coombs January 1949 January 1960 [9][16]
Governors of the Reserve Bank of Australia
1 Herbert Coombs January 1960 July 1968 [9][16]
2 Sir John Phillips KBE July 1968 July 1975 [9][17]
3 Sir Harold Knight KBE, DSC July 1975 August 1982 [9]
4 Robert Johnston AC August 1982 July 1989 [9]
5 Bernie Fraser September 1989 September 1996 [9]
6 Ian Macfarlane AC September 1996 September 2006 [9]
7 Glenn Stevens AC 18 September 2006 17 September 2016 [9]
8 Philip Lowe 18 September 2016 present [9]

See also

Heritage listings

A number of buildings associated with the Reserve Bank are heritage-listed including:

Notes

  • ^A Members are eligible to be appointed to another term.

References

  1. ^ http://www.rba.gov.au/media-releases/2016/mr-16-18.html. Missing or empty |title= (help)
  2. ^ a b c d e f g h i j k l m n o p "History of the RBA". Reserve Bank of Australia. Retrieved 5 June 2009.
  3. ^ a b c d "Overview of Functions and Operations". Reserve Bank of Australia. Archived from the original on 14 May 2009. Retrieved 7 June 2009.
  4. ^ a b c d e f g h i "Payments System Board". Reserve Bank of Australia. Archived from the original on 17 January 2010. Retrieved 10 June 2009.
  5. ^ a b c d "Reserve Bank Board". Reserve Bank of Australia. Retrieved 10 June 2009.
  6. ^ a b "Reserve Bank Act 1959" (PDF). Reserve Bank of Australia. p. 20. Retrieved 5 June 2009.
  7. ^ a b c d e f g h i j k l m n o p q "History and the Development of Central Banking in Australia 1920–1970" (PDF). Australian National University. Archived from the original (PDF) on 20 July 2008. Retrieved 7 June 2009.
  8. ^ a b "Currency Notes of the 1930s". Museum of Australian Currency Notes. Archived from the original on 22 May 2009. Retrieved 10 July 2009.
  9. ^ a b c d e f g h i j k l m n o p q "Past and Present Governors". Reserve Bank of Australia. Retrieved 6 June 2009.
  10. ^ "Australia bans reporting of multi-nation corruption case involving Malaysia, Indonesia and Vietnam". Retrieved 25 January 2014.
  11. ^ "Governance and Accountability of the RBA". Reserve Bank of Australia. Archived from the original on 13 September 2009. Retrieved 5 June 2009.
  12. ^ "MILLER, SIR DENISON SAMUEL KING (1860-1923)". Dictionary of Australian Biography. Retrieved 6 June 2009.
  13. ^ Kirkwood, J. A. "Riddle, Sir Ernest Cooper (1873–1939)". Australia Dictionary of Biography. Retrieved 6 June 2009.
  14. ^ Cornish, Selwyn. "Sheehan, Sir Henry John (1883–1941)". Australia Dictionary of Biography. Retrieved 6 June 2009.
  15. ^ Hill, M.R. "Armitage, Hugh Traill (1881–1963)". Australia Dictionary of Biography. Retrieved 6 June 2009.
  16. ^ a b Milliken, Robert (1 November 1997). "Obituary: H. C. Coombs". Independent.co.uk. Retrieved 6 June 2009.
  17. ^ 'Bank Knight and Wife Found Dead', The Daily Telegraph, 9 October 1986.
  18. ^ "Reserve Bank of Australia (Place ID 105396)". Australian Heritage Database. Department of the Environment. Retrieved 1 October 2018.
  19. ^ "Reserve Bank (Place ID 105456)". Australian Heritage Database. Department of the Environment. Retrieved 23 September 2018.

External links

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. 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) behind the United States dollar, the European Union's euro, the Japanese yen and the United Kingdom's pound sterling. 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.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 fifty-dollar note

The Australian fifty-dollar note is an Australian banknote with a face value of fifty Australian dollars (A$50). It is currently a polymer banknote, featuring portraits of David Unaipon and Edith Cowan.

Australian five-shilling note

Five shilling notes were first proposed in 1916, when the value of silver was estimated to become too expensive to use for making coins due to a possible decrease in Australia's supply of silver. The proposed note was designed to have a portrait of George VI, the King of the United Kingdom and Emperor of India, displayed on its front side. However, the need for paper notes did not arise, and by 1953, all the notes were destroyed, other than those now in the possession of Reserve Bank of Australia.

Australian one hundred-dollar note

The Australian one hundred-dollar note was first issued in 1984 as a paper note. There have been two different issues of this denomination: initially a very light turquoise-blue paper note, and from May 1996, a green polymer note.According to Reserve Bank of Australia statistics, the number of $100 banknotes in circulation in June 2005 was 149 million—18.5% of all notes in circulation. The cash value for these notes was $14,924 million—41.9% of the total value for all denominations. Only the $50 note had more cash value in circulation. In June 2008 there were 176.9 million notes in circulation (19%), with a value of $17,690 million (42.1%). Again, the value of cash in circulation is more for the $50 note. The larger value in $50 notes can be explained by the fact that almost all automated teller machines dispense $20 and $50 notes, but not $100 notes.

In June 2017, 337 million $100 notes were in circulation, 22% of the total notes in circulation; worth $33,689 million, 46% of the total value for all denominations.Since the start of issue there have been six signature combinations. Two other combinations were not issued.In December 2016 it was reported that Australia may abolish its $100 note to close down loopholes used by the black economy. However, the Reserve Bank of Australia officially stated that there are no plans to abolish the $100 note.

Australian ten-dollar note

The Australian ten-dollar note was issued when the currency was changed from the Australian pound to the Australian dollar on 14 February 1966; it replaced the £5 note which had similar blue colouration. There have been four different issues of this denomination, a paper banknote, a commemorative hipolymer note to celebrate the bicentennial of Australian settlement (the first polymer banknote of its kind), the 1993-2017 polymer note, and from September 2017 a polymer note featuring a transparent window.

According to Reserve Bank of Australia statistics, as at June 2017 there were 128 million $10 notes in circulation, with a net value of $1.284 billion. This was 2% of the cash value of all banknotes in circulation, and 8% of the number of all banknotes in circulation.Since the start of issue of $10 notes, there have been eleven signature combinations, of which the 1967 issue is the most valued. It was issued for one year only, along with the Coombs/Wilson issue of 1966.

Following the issue of a new $5 note in September 2016, the RBA revealed the design for the $10 note and was issued on the 20th of September, 2017.

Australian twenty-dollar note

The Australian twenty-dollar note was issued when the currency was changed from the Australian pound to the Australian dollar on 14 February 1966. It replaced the £10 note which had similar orange colouration. There have been only two different issues of this denomination: a paper note which had a gradient of yellow and red, with a distinct orange background, and a polymer note which can be recognised for its distinct red-orange colouration. The polymer note was issued on 31 October 1994.As of June 2017, 164 million $20 banknotes were in circulation, 11% of the total notes in circulation; worth $3,286 million, or 4% of the total value for all denominations.Since the start of issuance there have been 14 signature combinations, of which the 1967 issue is of the greatest value, issued for one year only; and the 1989 Phillip/Fraser being issued for less than a year.

From 1966 to 1974 the main title identifying the country was Commonwealth of Australia, there were 146,960,000 notes issued in its life. This was subsequently changed to Australia until the end of the issuance of paper currency for this denomination in 1994 with 1,661,970,048 of these notes being issued.

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.

Bernie Fraser (economist)

Bernard William Fraser (born 26 February 1941) is an Australian economist and was the Governor of the Reserve Bank of Australia from September 1989 to September 1996.

Fraser was born in Junee, New South Wales in 1941. He joined the Commonwealth Public Service in 1961, starting at the Department of National Development.Educated at the University of New England and the Australian National University, Bernie Fraser joined the Commonwealth Public Service in 1961, spending time in Treasury, interspersed with postings in London as a Treasury representative, three years in the Department of Finance and three years as Director of the National Energy Office. He soon moved to the Department of Treasury, in 1963. He was its London representative from 1969 to 1972. In 1981 Fraser was appointed Director of the National Energy Office. He returned to the Treasury in 1984 and became Secretary from September 1984 to September 1989.Fraser is an independent director of several industry superannuation funds and is a director of Members Equity Bank. He is the chairman of the board of the Climate Change Authority.He has appeared in several television ads in Australia for superannuation funds, notably sporting the catchphrase; "it's the super of the future".He was educated at Junee High School, the University of New England, Australia and the Australian National University. He has received Honorary Doctorates from the University of New England, Australia and Charles Sturt University, Australia. He is also an honorary Professor of Economics at the University of Canberra.

Bob Johnston (economist)

Robert Alan 'Bob' Johnston AC (born 19 July 1924) is an Australian economist and the 4th Governor of the Reserve Bank of Australia.

Central banks and currencies of Asia-Pacific

This is a list of central banks and currencies of Asia-Pacific .

Glenn Stevens

Glenn Robert Stevens (born 23 January 1958) is an Australian economist who was the Governor of the Reserve Bank of Australia from 2006 to 2016.

H. C. Coombs

Herbert Cole "Nugget" Coombs (24 February 1906 – 29 October 1997) was an Australian economist and public servant. He is best known as the first Governor of the Reserve Bank of Australia, in office from 1960 to 1968.

Hugh Morgan (businessman)

Hugh Matheson Morgan AC, (born 9 September 1940), is an Australian businessman and former CEO of Western Mining Corporation (1990 to 2003). He was President of the Business Council of Australia from 2003 to 2005. The Howard Government appointed him to the board of the Reserve Bank of Australia in 1996 where he remained until 2007. He also was the Founding Chairman of Asia Society Australia.

Martin Place

Martin Place is a pedestrian mall in the central business district of Sydney, New South Wales, Australia. Martin Place has been described as the "civic heart" of Sydney. As home to the Reserve Bank of Australia, the Commonwealth Bank of Australia, Macquarie Bank, Westpac and other corporations, it is also a centre of business and finance. The Sydney GPO and the Seven Network's Sydney news centre are also located on Martin Place.

Martin Place has become a national Australian icon in popular culture for attracting high-end film and television productions and actors to the area. Martin Place runs between George Street and Macquarie Street, and provides entrances to the Martin Place railway station below street level. Other cross streets include Pitt Street, Castlereagh Street, Elizabeth Street and Phillip Street.

The initial "Martin Place" was the section between George Street and Pitt Street, officially opened 1892, and was named in honour of Sir James Martin, the three time Premier of New South Wales and Chief Justice of Supreme Court of New South Wales. Closed to traffic in stages from 1971, Martin Place is surrounded by many heritage buildings and features the 1927 World War I ANZAC Cenotaph, water fountain, entertainment area, railway access and pedestrian seating.

Mortgage belt

The Mortgage belt is a term used in Australian politics to signify residential suburbs which have a high concentration of families mortgaging their homes.

Often the belt covers areas where homes could be considered more affordable yet the cost of servicing the mortgage loan represents a high proportion of the families' available income. Changes to cost of servicing a mortgage, seen through interest rate fluctuations, can trigger widespread satisfaction or dissatisfaction towards the government of the day.

In the 2004 federal election, the media played up the narrative the mortgage belt voted highly in favour of the Coalition, in fear that economic management under the Australian Labor Party could increase interest rates. As the Coalition ran a fear campaign on the issue and this became one of the keystones which helped it win a successive fourth term. However, it is generally agreed that governments have little control over interest rates, which are set by the Reserve Bank of Australia. There is little evidence in the political science literature to support the media's narrative for the mortgage belt making negative economic assessments of the Labor Party instead leader effects had a far larger impact on vote choice with a significant effect for negative assessments of the Labor leader, Mark Latham, on the defection of Labor partisans to the Coalition.In March 2005, interest rates rose by a quarter of a percent.

Mortgage belt areas played a significant role in the 2007 election where Labor won back many mortgage belt Liberal strongholds won in the 1996 election due to general disaffection with the incumbent government as well as high interest rates.The term has also seen use in New Zealand by political and economic commentators.

Note Printing Australia

Note Printing Australia (NPA) is a wholly owned subsidiary of the Reserve Bank of Australia (RBA) that produces banknotes and passports. It was corporatised in July 1998 and is located in Craigieburn, Melbourne. NPA has its origins as a subsidiary of the Commonwealth Bank and was established in 1913 to print banknotes for Australia. After printing paper banknotes for 75 years, NPA introduced the first polymer banknote technology in 1988. NPA print banknotes for several other countries as well as Australia due to the high standards of durability and difficulty of counterfeiting.

Official cash rate

The official cash rate (OCR) is the term used in Australia and New Zealand for the bank rate and is the rate of interest which the homogeneous central bank charges on overnight loans to commercial banks. This allows the Reserve Bank of Australia and the Reserve Bank of New Zealand to adjust the interest rates that apply in each country's economy. The OCR cannot be changed by transactions between financial institutions as this does not change the supply of money, only its location. Only transfers between the central bank and an institution can affect the OCR.

As banks settle all inter-bank transfers overnight, the central bank can regulate the rate paid for cash by the sale or buy back of bonds and other government issued securities (these are known as domestic market operations). As the sale or purchase of bonds affects the supply of money, then the interest rate will change to reflect its availability. This system indirectly influences the term structure of interest rates in the whole economy. Changes to the official cash rate generally affect the rates on housing and other loans within a matter of days or weeks. Under the Australian system the Reserve Bank of Australia issues its dealing intentions at the start of each day, and banks and other financial institutions will act prior to the actual rate being achieved.

The rate is set by the central banks regularly, usually every month in Australia and every six weeks in New Zealand and forms one of the main tools to manage monetary policy.

Philip Lowe

Philip Lowe (born 1961/1962) is an Australian economist who is the current Governor of the Reserve Bank of Australia, having succeeded Glenn Stevens on 18 September 2016. He was previously deputy governor under Stevens from February 2012 to September 2016.Lowe was born in Wagga Wagga, New South Wales, as the eldest of five children in the family. He attended St Michael's High School and Trinity Senior High School. Lowe later moved to Sydney and was hired by the RBA straight out of high school. He was initially employed as a clerical worker in 1980 at the age of 17, while completing his undergraduate commerce degree at the University of New South Wales by attending night classes. He was awarded first-class honours and the University Medal on his graduation in 1985. He later completed a doctorate in 1994 at the Massachusetts Institute of Technology (MIT), with Paul Krugperson as his adviser.In 1997, Lowe was appointed head of the RBA's Economic Research Department. He later headed the bank's Financial Stability Department (from 1999 to 2000), the Domestic Markets Department (from 2002 to 2003), and the Economic Analysis Department (from 2003 to 2004). From 2000 to 2002, Lowe worked at the Bank for International Settlements in Switzerland, as head of its Financial Institutions and Infrastructure Division. He was made Assistant Governor (Financial System) at the RBA in 2004, and Assistant Governor (Economic) in 2009, eventually becoming Deputy Governor in 2012. In May 2016, Scott Morrison (the Treasurer of Australia) announced that Lowe would succeed Glenn Stevens at the head of the RBA at the end of his term in September 2016.He is married and has three children.

Section 3 of the Constitution of Australia

Section 3 of the Constitution of Australia deals with the salary of Governor General. The salary of Governor-General is paid from the Consolidated Revenue Fund and is regulated by the Constitution, which fixed the initial salary at £10,000, an amount that would not increase until 1974.

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