Australian dollar

The official currency of Australia and several other territories

Australian dollar

ISO 4217
Code	AUD (numeric: 036 )
Subunit	0.01
Unit
Plural
Symbol	$ ‎
Nickname

The Australian dollar (sign: $; code: AUD) is the currency of Australia, including its external territories. It is also used by three independent Pacific Island states: Kiribati, Nauru, and Tuvalu. Within Australia, it is almost always abbreviated with the dollar sign ($), with A$ or AU$ sometimes used to distinguish it from other dollar-denominated currencies.

History

The Australian dollar was introduced on 14 February 1966, replacing the Australian pound, which had been in use since 1910. The change was part of a decimalisation process, where the new currency was divided into 100 cents, replacing the previous system of pounds, shillings, and pence.

The decision to adopt the dollar was made in 1963, and the name "royal" was initially proposed for the new currency. However, "dollar" was eventually chosen, and the transition to the new currency was completed smoothly.

Coins and Banknotes

The Australian dollar is subdivided into 100 cents. The coins in circulation include 5, 10, 20, and 50 cent coins, as well as $1 and $2 coins. The banknotes in circulation are $5, $10, $20, $50, and $100.

The Royal Australian Mint is responsible for producing Australia's coins, while the Reserve Bank of Australia issues the banknotes. Australian banknotes are notable for being made of polymer, a technology that was pioneered in Australia and has since been adopted by many other countries.

Exchange Rates

The Australian dollar is a free-floating currency, meaning its value is determined by the foreign exchange market. It is one of the most traded currencies in the world, often used as a proxy for global risk appetite due to Australia's economic ties to Asia and its status as a major commodity exporter.

Economic Role

Australia's economy is heavily reliant on the export of commodities such as iron ore, coal, and natural gas. As a result, the value of the Australian dollar is often influenced by changes in commodity prices. The currency is also affected by interest rate differentials between Australia and other countries, as well as global economic conditions.

Monetary Policy

The Reserve Bank of Australia (RBA) is responsible for setting monetary policy in Australia. The RBA's primary objective is to maintain price stability, full employment, and the economic prosperity and welfare of the Australian people. It does this by setting the official cash rate, which influences interest rates across the economy.

Also see

• Reserve Bank of Australia
• Royal Australian Mint
• Economy of Australia
• Australian pound
• Decimalisation
• Polymer banknote