|
The Australian dollar (currency code AUD) has been, since 1966, the currency of the Commonwealth of Australia, including Christmas Island, Cocos (Keeling) Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru and Tuvalu. It is normally abbreviated with the dollar sign $. Alternatively A$ or $A, $AU or AU$ is used to distinguish it from other dollar-denominated currencies. It is sometimes affectionately called the "Aussie battler"—during a low period (relative to the U.S. dollar) around 2001 and 2002 the currency was sometimes locally called the "Pacific Peso". It is divided into 100 cents. The Australian dollar is currently the sixth-most-traded currency in world foreign exchange markets (behind the U.S. dollar, the euro, the British pound, the yen, and the Canadian dollar), accounting for approximately 4–5% of worldwide foreign exchange transactions. The Australian dollar is popular with currency traders due to the relative lack of government intervention in the foreign exchange market, the general stability of the economy and government as well as the prevailing view that it offers diversification benefits in a portfolio containing the major world currencies (especially because of its greater exposure to Asian economies and the commodities cycle).
History
Coins
First series The first paper issues of Australian dollars, issued in 1966, featured portraits of the following persons: Image:old_aust_one_dollar_note(front).JPG|$1 banknote front—Elizabeth II Image:old_aust_one_dollar_note(back).JPG|$1 banknote back—Aboriginal art designed by David Malangi Image:AUD2.jpg|$2 banknote front—John Macarthur Image:Australian_2_Dollar_Note_Back.png|$2 banknote back—William Farrer Image:Sir Joseph Banks and a collage of unique Australian flora.jpg|$5 banknote front—Joseph Banks Image:Caroline Chisholm chisholm 5 dollar back big.jpg|$5 banknote back—Caroline Chisholm Image:GreenwayNote.JPG|$10 banknote front—Francis Greenway Image:Lawson_10_dollar_back_biglawson_10_dollar_back_big.jpg|$10 banknote back—Henry Lawson Image:Charles Kingsford smith 20 dollar note front big.jpg|$20 banknote front—Charles Kingsford Smith Image:Aud20p.jpg|$20 banknote back—Lawrence Hargrave Image:Australian $50 note paper front.jpg|$50 banknote front—Howard Florey Image:Australian$50paper.JPG|$50 banknote back—Ian Clunies Ross Image:100 dollar note front.jpg|$100 banknote front—Douglas Mawson Image:Discovery_100_dollar_note_back_bigJohn_Tebbutt.jpg|$100 banknote back—John Tebbutt The $5 note was not issued until 1967. The $1 (10/-,) $2 (£1,) $10 (£5,) and $20 (£10) had exact exchange rates with pounds, but the $5 (£2/10) did not, and so was introduced after the public had become familiar with decimal currency. The one dollar note was replaced by a coin in 1984, while the two dollar note was replaced by a coin in 1988. The $100 note was introduced in 1984, in response to inflation requiring a larger denomination for transactions. Polymer series In 1988, the Reserve Bank of Australia issued plastic, specifically polypropylene polymer banknotes (which were produced by Note Printing Australia), to commemorate the bicentenary of European settlement in Australia. These notes contained a transparent "window" with an optically variable image of Captain James Cook as a security feature. Australian banknotes were the first in the world to use such features. Despite initial difficulties, the Reserve Bank saw potential in the issue of plastic banknotes and commenced preparations for an entirely new series made from polymer, commencing with the $5 note in 1992. In 1995, the design of the $5 note was updated to match the rest of the New Note Series, with additional slight changes in 1996. In 2001, a special commemorative $5 note was produced, but in 2002, the previous version's production commenced again. In 2002, the design of all notes (except for the $5 note picturing the Queen) were slightly changed to include the names of the people pictured on them under the portraits, and swapping the order of the signatures of officials on the notes. Today all Australian notes are made of polymer. Notes Value of the Australian dollar In 2001, the value of one Australian dollar went below 50 US cents for the first time. As of August 2006, the Australian dollar was worth 76 US cents. In 1966 when the Australian dollar was introduced, the International gold standard still operated. The Australian dollar was at that time worth 980 milligrams of gold. As of September 2006 the Australian dollar was worth 40 milligrams of gold.* Exchange rate policies For much of its history, Australia maintained a peg to the British pound reflecting 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 to the U.S. dollar under the Bretton Woods system, but it was effectively pegged to sterling until 1967. With the breakdown of the Bretton Woods system in 1971, Australia converted the mostly-fixed peg to a moving peg against the U.S. dollar. In September 1974 Australia moved to a peg against a basket of currencies called the TWI (trade weighted index) in an effort to reduce fluctuations associated with its peg to the U.S. dollar. The peg to the TWI was changed to a moving peg in November 1976, causing the actual value of the peg to be periodically adjusted. In December 1983, the Australian Labor government led by Prime Minister Bob Hawke and Treasurer Paul Keating "floated" the Australian dollar. From that point, movements in the Australian dollar continued to reflect the strength of its terms of trade. For decades Australia's reliance upon commodity (mineral and farm) exports has seen the Australian dollar rally during global booms, and fall when mineral prices slumped or when domestic spending overshadowed its export earnings outlook. The currency's high volatility, currency exposure and interest swap has made the AUD one of the most traded currencies in the world, far in excess of the economy's importance (2% of global economic activity). See also Notes | |||||||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||
 |
|
| |