The Australian dollar (
sign
A sign is an object, quality, event, or entity whose presence or occurrence indicates the probable presence or occurrence of something else. A natural sign bears a causal relation to its object—for instance, thunder is a sign of storm, or me ...
: $;
code
In communications and information processing, code is a system of rules to convert information—such as a letter, word, sound, image, or gesture—into another form, sometimes shortened or secret, for communication through a communication ...
: AUD) is the
currency
A currency, "in circulation", from la, currens, -entis, literally meaning "running" or "traversing" is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins.
A more general def ...
of
Australia
Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...
, including its external territories:
Christmas Island
Christmas Island, officially the Territory of Christmas Island, is an Australian external territory comprising the island of the same name. It is located in the Indian Ocean, around south of Java and Sumatra and around north-west of the ...
,
Cocos (Keeling) Islands
)
, anthem = "''Advance Australia Fair''"
, song_type =
, song =
, image_map = Australia on the globe (Cocos (Keeling) Islands special) (Southeast Asia centered).svg
, map_alt = Location of the Cocos (Keeling) Islands
, map_caption = ...
, and
Norfolk Island
Norfolk Island (, ; Norfuk: ''Norf'k Ailen'') is an external territory of Australia located in the Pacific Ocean between New Zealand and New Caledonia, directly east of Australia's Evans Head and about from Lord Howe Island. Together with ...
. It is officially used as currency by three independent
Pacific Island states:
Kiribati
Kiribati (), officially the Republic of Kiribati ( gil, ibaberikiKiribati),[Kiribati]
''The Wor ...
,
Nauru
Nauru ( or ; na, Naoero), officially the Republic of Nauru ( na, Repubrikin Naoero) and formerly known as Pleasant Island, is an island country and microstate in Oceania, in the Central Pacific. Its nearest neighbour is Banaba Island in Ki ...
, and
Tuvalu
Tuvalu ( or ; formerly known as the Ellice Islands) is an island country and microstate in the Polynesian subregion of Oceania in the Pacific Ocean. Its islands are situated about midway between Hawaii and Australia. They lie east-northeast ...
. It is
legal tender
Legal tender is a form of money that courts of law are required to recognize as satisfactory payment for any monetary debt. Each jurisdiction determines what is legal tender, but essentially it is anything which when offered ("tendered") in pa ...
in Australia.
[''Reserve Bank Act 1959'', s.36(1)]
an
''Currency Act 1965'', s.16
Within Australia, it is almost always abbreviated with the
dollar sign
The dollar sign, also known as peso sign, is a symbol consisting of a capital " S" crossed with one or two vertical strokes ($ or ), used to indicate the unit of various currencies around the world, including most currencies denominated "pes ...
($), with A$ or AU$ sometimes used to distinguish it from other
dollar
Dollar is the name of more than 20 currencies. They include the Australian dollar, Brunei dollar, Canadian dollar, Hong Kong dollar, Jamaican dollar, Liberian dollar, Namibian dollar, New Taiwan dollar, New Zealand dollar, Singapore dollar, U ...
-denominated currencies. The $ symbol precedes the amount. It is subdivided into 100
cents.
The Australian dollar was introduced on 14 February 1966 to replace the pre-decimal
Australian pound
The pound ( Sign: £, £A for distinction) 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 (denoted by the symbol ...
, with the conversion rate of two dollars to the pound.
In 2016, the Australian dollar was the fifth-most-traded currency in world
foreign exchange market
The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all aspec ...
s, accounting for 6.9% of the world's daily share. In the same year, there were A$71.12 billion in Australian
currency in circulation
In monetary economics, the currency in circulation in a country is the value of
currency or cash (banknotes and coins) that has ever been issued by the country’s monetary authority less the amount that has been removed. More broadly, money in ci ...
, or A$2,932 per person in Australia, which includes cash reserves held by the banking system and cash in circulation in other countries or held as a
foreign exchange reserve
Foreign exchange reserves (also called forex reserves or FX reserves) are cash and other reserve assets such as gold reserve, gold held by a central bank or other monetary authority that are primarily available to balance of payment, balance pa ...
.
Constitutional basis
Section 51(xii) of the Constitution of Australia
Section 51 (xii): is a subsection of Section 51 of the Constitution of Australia, that gives the Commonwealth Parliament the right to legislate with respect to “currency, coinage, and legal tender.”
Generally, powers in section 51 of the Con ...
gives the Commonwealth (federal) Parliament the power to legislate with respect to "currency, coinage, and legal tender".
The currency power must be read in conjunction with other parts of the
Australian Constitution
The Constitution of Australia (or Australian Constitution) is a constitutional document that is supreme law in Australia. It establishes Australia as a federation under a constitutional monarchy and outlines the structure and powers of the ...
. Section 115 of the Constitution provides: "A State shall not coin money, nor make anything but gold and silver coin a legal tender in payment of debts."
Under this provision the
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 colonia ...
, owned by the
Western Australia
Western Australia (commonly abbreviated as WA) is a state of Australia occupying the western percent of the land area of Australia excluding external territories. It is bounded by the Indian Ocean to the north and west, the Southern Ocean to th ...
n government, still produces gold and silver coins with legal tender status, the
Australian Gold Nugget
The Australian Gold Nugget is a gold bullion coin minted by the Perth Mint. The coins have been minted in denominations of oz, oz, oz, oz, 1 oz, 2 oz, 10 oz, and 1 kg of 24 carat gold. They have legal tender status in Australia and are one ...
and
Australian Silver Kookaburra
The Silver Kookaburra is a silver bullion coin originating from Australia, and produced at the Perth Mint starting in 1990. The coins were .999 fine silver until the 2018 edition, which increased in purity to .9999 silver. While the obverse of th ...
. These, however, although having the status of legal tender, are almost never circulated or used in payment of debts, and are mostly considered
bullion coin
Bullion is non-ferrous metal that has been refined to a high standard of elemental purity. The term is ordinarily applied to bulk metal used in the production of coins and especially to precious metals such as gold and silver. It comes from the ...
s. Australian coins are now produced at the
Royal Australian Mint
The Royal Australian Mint is the sole producer of all of Australia's circulating coins and is a Commonwealth Government entity operating within the portfolio of the Treasury. The Mint is situated in the Australian federal capital city of Canberr ...
in
Canberra
Canberra ( )
is the capital city of Australia. Founded following the federation of the colonies of Australia as the seat of government for the new nation, it is Australia's largest inland city and the eighth-largest city overall. The ci ...
.
History
Early moves towards decimalisation
Before the adoption of the current Australian dollar in 1966, Australia's currency was the
Australian pound
The pound ( Sign: £, £A for distinction) 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 (denoted by the symbol ...
, which like the British
pound sterling
Sterling (abbreviation: stg; Other spelling styles, such as STG and Stg, are also seen. ISO code: GBP) is the currency of the United Kingdom and nine of its associated territories. The pound ( sign: £) is the main unit of sterling, and t ...
was divided into 20 shillings and each shilling was divided into 12 pence, making a pound worth 240 pence. The Australian pound was introduced in 1910 at par with the pound sterling or A£1 = UK£1 until 1931, when it was devalued to A£1 = UK£0.8 or 16 shillings UK.
In 1902, a select committee of the
House of Representatives
House of Representatives is the name of legislative bodies in many countries and sub-national entitles. In many countries, the House of Representatives is the lower house of a bicameral legislature, with the corresponding upper house often c ...
, chaired by
George Edwards, had recommended that Australia adopt a decimal currency with the pound divided into ten
florin
The Florentine florin was a gold coin struck from 1252 to 1533 with no significant change in its design or metal content standard during that time. It had 54 grains (3.499 grams, 0.113 troy ounce) of nominally pure or 'fine' gold with a purcha ...
s and the florin into 100 cents. In 1937, the Banking Royal Commission appointed by the
Lyons Government had recommended that Australia adopt "a system of decimal coinage … based upon the division of the Australian pound into 1000 parts".
Adoption of the dollar
In February 1959, Treasurer
Harold Holt
Harold Edward Holt (5 August 190817 December 1967) was an Australian politician who served as the 17th prime minister of Australia from 1966 until his presumed death in 1967. He held office as leader of the Liberal Party.
Holt was born in S ...
appointed a Decimal Currency Committee, chaired by
Walter D. Scott
Sir Walter Scott, AC, CMG (10 November 1903 - 12 February 1981) founded Australia's first management consultancy firm, WD Scott and was active in its leadership until his death in 1981. Sir Walter was knighted in 1966 and appointed a Companion ...
, to examine the merits of decimalisation. The committee reported in August 1960 in favour of decimalisation and recommended that a new currency be introduced in February 1963, with the adoption to be modelled on South Africa's replacement of the
South African pound
The pound (Afrikaans: ''pond''; symbol £, £SA for distinction) was the currency of the Union of South Africa from the formation of the country as a British Dominion in 1910. It was replaced by the rand in 1961 when South Africa decimalised.
In ...
with the
rand
The RAND Corporation (from the phrase "research and development") is an American nonprofit global policy think tank created in 1948 by Douglas Aircraft Company to offer research and analysis to the United States Armed Forces. It is financed ...
worth 10 shillings or pound. The
Menzies Government
Menzies is a Scottish surname, with Gaelic forms being Méinnearach and Méinn, and other variant forms being Menigees, Mennes, Mengzes, Menzeys, Mengies, and Minges.
Derivation and history
The name and its Gaelic form are probably derived f ...
announced its support for decimalisation in July 1961, but delayed the process in order to give further consideration to the implementation process. In April 1963, Holt announced that a decimal currency was scheduled to be introduced in February 1966, with a base unit equal to 10 shillings, and that a Decimal Currency Board would be established to oversee the transition process.
[
A public consultation process was held in which over 1,000 names were suggested for the new currency. In June 1963, Holt announced that the new currency would be called the "royal". This met with widespread public disapproval, and three months later it was announced that it would instead be named the "dollar".
The Australian pound was replaced by the Australian dollar on 14 February 1966 with the conversion rate of A$2 = A£1. Since Australia was still part of the fixed-exchange ]sterling area
The sterling area (or sterling bloc, legally scheduled territories) was a group of countries that either pegged their currencies to sterling, or actually used sterling as their own currency.
The area began to appear informally during the ear ...
, the exchange rate was fixed to the pound sterling
Sterling (abbreviation: stg; Other spelling styles, such as STG and Stg, are also seen. ISO code: GBP) is the currency of the United Kingdom and nine of its associated territories. The pound ( sign: £) is the main unit of sterling, and t ...
at a rate of A$1 = 8 U.K. shillings (or UK£1 = A$2.50, and in turn UK£1 = US$2.80). In 1967, Australia effectively left the sterling area when the pound sterling was devalued against the US dollar from US$2.80 to US$2.40, but the Australian dollar chose to retain its peg to the US dollar at A$1 = US$1.12 (hence appreciating in value versus sterling).
The Australian dollar is legal tender in its external territories: Christmas Island
Christmas Island, officially the Territory of Christmas Island, is an Australian external territory comprising the island of the same name. It is located in the Indian Ocean, around south of Java and Sumatra and around north-west of the ...
, Cocos (Keeling) Islands
)
, anthem = "''Advance Australia Fair''"
, song_type =
, song =
, image_map = Australia on the globe (Cocos (Keeling) Islands special) (Southeast Asia centered).svg
, map_alt = Location of the Cocos (Keeling) Islands
, map_caption = ...
, and Norfolk Island
Norfolk Island (, ; Norfuk: ''Norf'k Ailen'') is an external territory of Australia located in the Pacific Ocean between New Zealand and New Caledonia, directly east of Australia's Evans Head and about from Lord Howe Island. Together with ...
; and is also official currency in Kiribati
Kiribati (), officially the Republic of Kiribati ( gil, ibaberikiKiribati),[Kiribati]
''The Wor ...
, Nauru
Nauru ( or ; na, Naoero), officially the Republic of Nauru ( na, Repubrikin Naoero) and formerly known as Pleasant Island, is an island country and microstate in Oceania, in the Central Pacific. Its nearest neighbour is Banaba Island in Ki ...
, and Tuvalu
Tuvalu ( or ; formerly known as the Ellice Islands) is an island country and microstate in the Polynesian subregion of Oceania in the Pacific Ocean. Its islands are situated about midway between Hawaii and Australia. They lie east-northeast ...
. It was legal tender in Papua New Guinea
Papua New Guinea (abbreviated PNG; , ; tpi, Papua Niugini; ho, Papua Niu Gini), officially the Independent State of Papua New Guinea ( tpi, Independen Stet bilong Papua Niugini; ho, Independen Stet bilong Papua Niu Gini), is a country i ...
until 31 December 1975 when it was replaced by the 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 name ''Kina'' is derived from Kuanua language of the Tolai region, referring to a callable pearl ...
, and in Solomon Islands
Solomon Islands is an island country consisting of six major islands and over 900 smaller islands in Oceania, to the east of Papua New Guinea and north-west of Vanuatu. It has a land area of , and a population of approx. 700,000. Its capita ...
until 1977 when it was replaced by the Solomon Islands dollar
The Solomon Islands dollar (ISO 4217 code: ''SBD'') is the currency of Solomon Islands since 1977. Its symbol is $, with SI$ used to differentiate it from other currencies also using the dollar sign. It is subdivided into 100 cents.
Exchang ...
.
Coins
In 1966, coins were introduced in denominations of 1 and 2 cents (bronze); 5, 10, and 20 cents (cupronickel
Cupronickel or copper-nickel (CuNi) is an alloy of copper that contains nickel and strengthening elements, such as iron and manganese. The copper content typically varies from 60 to 90 percent. (Monel is a nickel-copper alloy that contains a minimu ...
; 75% copper, 25% nickel); and 50 cents (silver, then cupronickel). The 50-cent coins in 80% silver were withdrawn after a year when the intrinsic value of the silver content was found to considerably exceed the face value of the coins. Aluminium bronze
Aluminium bronze is a type of bronze in which aluminium is the main alloying metal added to copper, in contrast to standard bronze (copper and tin) or brass (copper and zinc). A variety of aluminium bronzes of differing compositions have found in ...
(92% copper, 6% aluminium, 2% nickel) 1-dollar coins were introduced in 1984, followed by aluminium bronze 2-dollar coins in 1988, to replace the banknotes of that value. 1- and 2-cent coins were discontinued in 1991 and withdrawn from circulation in 1992; since then cash transactions have been rounded to the nearest 5 cents.
Australia's coins are produced by the Royal Australian Mint
The Royal Australian Mint is the sole producer of all of Australia's circulating coins and is a Commonwealth Government entity operating within the portfolio of the Treasury. The Mint is situated in the Australian federal capital city of Canberr ...
, which is located in the nation's capital, Canberra
Canberra ( )
is the capital city of Australia. Founded following the federation of the colonies of Australia as the seat of government for the new nation, it is Australia's largest inland city and the eighth-largest city overall. The ci ...
. 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.
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. Pre-decimal Australian coins remain legal tender for 10 cents per shilling. Before 2006 the old New Zealand 5-, 10- and 20-cent coins were often mistaken for Australian coins of the same value, and vice versa, and therefore circulated in both countries. The UK replaced these coins with smaller versions from 1990 to 1993, as did New Zealand in 2006. 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.
With a mass of and a diameter of , the Australian 50-cent coin is one of the largest coins used in the world today.
Commemorative coins
The Royal Australian Mint
The Royal Australian Mint is the sole producer of all of Australia's circulating coins and is a Commonwealth Government entity operating within the portfolio of the Treasury. The Mint is situated in the Australian federal capital city of Canberr ...
also has an international reputation for producing quality numismatic coins. It has first issued commemorative 50-cent coins in 1970, commemorating James Cook
James Cook (7 November 1728 Old Style date: 27 October – 14 February 1779) was a British explorer, navigator, cartographer, and captain in the British Royal Navy, famous for his three voyages between 1768 and 1779 in the Pacific Ocean an ...
'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
Charles III (Charles Philip Arthur George; born 14 November 1948) is King of the United Kingdom and the 14 other Commonwealth realms. He was the longest-serving heir apparent and Prince of Wales and, at age 73, became the oldest person to ...
and Lady Diana Spencer
Diana, Princess of Wales (born Diana Frances Spencer; 1 July 1961 – 31 August 1997) was a member of the British royal family. She was the first wife of King Charles III (then Prince of Wales) and mother of Princes William and Harry. Her ac ...
in 1981, the Brisbane
Brisbane ( ) is the capital and most populous city of the states and territories of Australia, Australian state of Queensland, and the list of cities in Australia by population, third-most populous city in Australia and Oceania, with a populati ...
Commonwealth Games
The Commonwealth Games, often referred to as the Friendly Games or simply the Comm Games, are a quadrennial international multi-sport event among athletes from the Commonwealth of Nations. The event was first held in 1930, and, with the exce ...
in 1982, and the Australian Bicentenary
The bicentenary of Australia was celebrated in 1988. It marked 200 years since the arrival of the First Fleet of British convict ships at Sydney in 1788.
History
The bicentennial year marked Captain Arthur Phillip's arrival with the 11 ships ...
in 1988. Issues expanded into greater numbers in the 1990s and the 21st century, responding to collector demand. Commemorative designs have also been featured on the circulating two dollar, one dollar, and 20 cent coins.
In commemoration of the 40th anniversary of decimal currency
Decimalisation or decimalization (see spelling differences) is the conversion of a system of currency or of weights and measures to units related by powers of 10.
Most countries have decimalised their currencies, converting them from non-decimal ...
, the 2006 mint proof
Proof most often refers to:
* Proof (truth), argument or sufficient evidence for the truth of a proposition
* Alcohol proof, a measure of an alcoholic drink's strength
Proof may also refer to:
Mathematics and formal logic
* Formal proof, a con ...
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.
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 notes. The $5 note was issued in 1967, the $50 was issued in 1973 and the $100 was issued in 1984.
The $1 banknote was replaced by a $1 coin in 1984, while the $2 banknote was replaced by a smaller $2 coin in 1988. Although no longer printed, all previous notes of the Australian dollar are still considered legal tender.
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 Commonwealth Scientific and Industrial Research Organisation (CSIRO) is an Australian Government agency responsible for scientific research.
CSIRO works with leading organisations around the world. From its headquarters in Canberra, CSIRO ...
, culminating in the introduction of the first polymer banknote
Polymer banknotes are banknotes made from a synthetic polymer such as biaxially oriented polypropylene (BOPP). Such notes incorporate many security features not available in paper banknotes, including the use of metameric inks. Polymer banknote ...
in 1988.
First polymer series
Australia was the first country to produce polymer banknote
Polymer banknotes are banknotes made from a synthetic polymer such as biaxially oriented polypropylene (BOPP). Such notes incorporate many security features not available in paper banknotes, including the use of metameric inks. Polymer banknote ...
s, more specifically made of polypropylene
Polypropylene (PP), also known as polypropene, is a thermoplastic polymer used in a wide variety of applications. It is produced via chain-growth polymerization from the monomer propylene.
Polypropylene
belongs to the group of polyolefins and ...
polymer, which were produced by 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 subsidiar ...
. These revolutionary polymer notes are cleaner than paper notes, are more durable and easily recyclable.
The first polymer banknote was issued in 1988 as a $10 note commemorating the bicentenary of European settlement in Australia. 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 first polymer series was rolled out starting 1992 and featured the following persons:
* The $100 note features world-renowned soprano Dame Nellie Melba
Dame Nellie Melba (born Helen Porter Mitchell; 19 May 186123 February 1931) was an Australian operatic dramatic coloratura soprano (three octaves). She became one of the most famous singers of the late Victorian era and the early 20th century ...
(1861–1931), and the distinguished soldier, engineer and administrator General Sir John Monash (1865–1931).
* The $50 note features Aboriginal writer and inventor David Unaipon
David Ngunaitponi (28 September 1872 – 7 February 1967), known as David Unaipon, was an Aboriginal Australian man of the Ngarrindjeri people. He was a preacher, inventor and author. Unaipon's contribution to Australian society helped to bre ...
(1872–1967), and Australia's first female parliamentarian, Edith Cowan
Edith Dircksey Cowan (' Brown; 2 August 18619 June 1932) was an Australian social reformer who worked for the rights and welfare of women and children. She is best known as the first Australian woman to serve as a member of parliament. Cowan h ...
(1861–1932).
* The $20 note features the founder of the world's first aerial medical service (the Royal Flying Doctor Service of Australia
The Royal Flying Doctor Service (RFDS), commonly known as the Flying Doctor, is an air medical service in Australia. It is a non-profit organisation that provides emergency and primary health care services for those living in rural, remote an ...
), the Reverend John Flynn (1880–1951), and Mary Reibey
Mary Reibey née ''Haydock'' (12 May 177730 May 1855) was an English-born merchant, shipowner and trader who was transported to Australia as a convict. After gaining her freedom, she was viewed by her contemporaries as a community role model an ...
(1777–1855), who arrived in Australia as a convict in 1792 and went on to become a successful shipping magnate and philanthropist.
* The $10 note features the poets AB "Banjo" Paterson (1864–1941) and Dame Mary Gilmore
Dame Mary Jean Gilmore (née Cameron; 16 August 18653 December 1962) was an Australian writer and journalist known for her prolific contributions to Australian literature and the broader national discourse. She wrote both prose and poetry.
Gi ...
(1865–1962). This note incorporates micro-printed excerpts of Paterson's and Gilmore's work.
* The $5 note features Her Majesty Queen Elizabeth II and Parliament House, Canberra
Parliament House, also referred to as Capital Hill or simply Parliament, is the meeting place of the Parliament of Australia, and the seat of the legislative branch of the Australian Government. Located in Canberra, the Parliament building is ...
, the national capital.
A special centenary issue of the $5 note featured Sir Henry Parkes
Sir Henry Parkes, (27 May 1815 – 27 April 1896) was a colonial Australian politician and longest non-consecutive Premier of the Colony of New South Wales, the present-day state of New South Wales in the Commonwealth of Australia. He has be ...
and Catherine Helen Spence
Catherine Helen Spence (31 October 1825 – 3 April 1910) was a Scottish-born Australian author, teacher, journalist, politician, leading suffragist, and Georgist. Spence was also a minister of religion and social worker, and supporter of ...
in 2001. In 2015–2016 there were petitions to feature Fred Hollows on the upgraded $5 note, but failed to push through when the new note was introduced on 1 September 2016.
Australia also prints polymer banknotes for a number of other countries through 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 subsidiar ...
, a wholly owned subsidiary of the Reserve Bank of Australia. Note Printing Australia prints polymer notes or simply supplies the polymer substrate for a growing number of other countries including Bangladesh
Bangladesh (}, ), officially the People's Republic of Bangladesh, is a country in South Asia. It is the eighth-most populous country in the world, with a population exceeding 165 million people in an area of . Bangladesh is among the mos ...
, Brunei
Brunei ( , ), formally Brunei Darussalam ( ms, Negara Brunei Darussalam, Jawi alphabet, Jawi: , ), is a country located on the north coast of the island of Borneo in Southeast Asia. Apart from its South China Sea coast, it is completely sur ...
, Chile
Chile, officially the Republic of Chile, is a country in the western part of South America. It is the southernmost country in the world, and the closest to Antarctica, occupying a long and narrow strip of land between the Andes to the east a ...
, Kuwait
Kuwait (; ar, الكويت ', or ), officially the State of Kuwait ( ar, دولة الكويت '), is a country in Western Asia. It is situated in the northern edge of Eastern Arabia at the tip of the Persian Gulf, bordering Iraq to the nort ...
, Malaysia
Malaysia ( ; ) is a country in Southeast Asia. The federation, federal constitutional monarchy consists of States and federal territories of Malaysia, thirteen states and three federal territories, separated by the South China Sea into two r ...
, Mexico
Mexico (Spanish: México), officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatema ...
, Nepal
Nepal (; ne, नेपाल ), formerly the Federal Democratic Republic of Nepal ( ne,
सङ्घीय लोकतान्त्रिक गणतन्त्र नेपाल ), is a landlocked country in South Asia. It is mai ...
, New Zealand
New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island count ...
, Papua New Guinea
Papua New Guinea (abbreviated PNG; , ; tpi, Papua Niugini; ho, Papua Niu Gini), officially the Independent State of Papua New Guinea ( tpi, Independen Stet bilong Papua Niugini; ho, Independen Stet bilong Papua Niu Gini), is a country i ...
, Romania
Romania ( ; ro, România ) is a country located at the crossroads of Central Europe, Central, Eastern Europe, Eastern, and Southeast Europe, Southeastern Europe. It borders Bulgaria to the south, Ukraine to the north, Hungary to the west, S ...
, Samoa
Samoa, officially the Independent State of Samoa; sm, Sāmoa, and until 1997 known as Western Samoa, is a Polynesian island country consisting of two main islands (Savai'i and Upolu); two smaller, inhabited islands (Manono Island, Manono an ...
, Singapore
Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...
, Solomon Islands
Solomon Islands is an island country consisting of six major islands and over 900 smaller islands in Oceania, to the east of Papua New Guinea and north-west of Vanuatu. It has a land area of , and a population of approx. 700,000. Its capita ...
, Sri Lanka
Sri Lanka (, ; si, ශ්රී ලංකා, Śrī Laṅkā, translit-std=ISO (); ta, இலங்கை, Ilaṅkai, translit-std=ISO ()), formerly known as Ceylon and officially the Democratic Socialist Republic of Sri Lanka, is an ...
and Vietnam
Vietnam or Viet Nam ( vi, Việt Nam, ), officially the Socialist Republic of Vietnam,., group="n" is a country in Southeast Asia, at the eastern edge of mainland Southeast Asia, with an area of and population of 96 million, making i ...
. Many other countries are showing a strong interest in the new technology.
Second polymer series
On 27 September 2012, the Reserve Bank of Australia
The Reserve Bank of Australia (RBA) is Australia's central bank and banknote issuing authority. It has had this role since 14 January 1960, when the ''Reserve Bank Act 1959'' removed the central banking functions from the Commonwealth Bank.
T ...
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
and include tactile features like Braille dots for ease of use of the visually impaired.
All persons featured on the first polymer series were retained on the second polymer series.
Exchange rates
Exchange rate history
Prior to 1983, Australia maintained a fixed exchange rate
A fixed exchange rate, often called a pegged exchange rate, is a type of exchange rate regime in which a currency's value is fixed or pegged by a monetary authority against the value of another currency, a basket of other currencies, or another m ...
. The Australian pound was initially at par from 1910 with the British pound or A£1 = UK£1; from 1931 it was devalued to A£1 = UK£0.8 or 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
The Bretton Woods system of monetary management established the rules for commercial and financial relations among the United States, Canada, Western European countries, Australia, and Japan after the 1944 Bretton Woods Agreement. The Bretto ...
, a fixed exchange rate system that pegged the U.S. dollar to gold, but the Australian dollar was effectively pegged to sterling until 1967 at UK£1 = A£1.25 = A$2.50 = US$2.80. In 1967 Australia did not follow the pound sterling devaluation and remained fixed to the U.S. dollar
The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the officia ...
at A$1 = US$1.12.
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
The trade-weighted effective exchange rate index, a common form of the effective exchange rate index, is a multilateral exchange rate index. It is compiled as a weighted average of exchange rates of ''home'' versus ''foreign'' currencies, with th ...
(TWI) in an effort to reduce the fluctuations associated with its tie to the US dollar. The daily TWI valuation was changed in November 1976 to a periodically adjusted valuation.
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; 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.
In December 1983, the Australian Labor
The Australian Labor Party (ALP), also simply known as Labor, is the major centre-left political party in Australia, one of two major parties in Australian politics, along with the centre-right Liberal Party of Australia. The party forms the f ...
government
A government is the system or group of people governing an organized community, generally a state.
In the case of its broad associative definition, government normally consists of legislature, executive, and judiciary. Government is a ...
led by Prime Minister
A prime minister, premier or chief of cabinet is the head of the cabinet and the leader of the ministers in the executive branch of government, often in a parliamentary or semi-presidential system. Under those systems, a prime minister is not ...
Bob Hawke
Robert James Lee Hawke (9 December 1929 – 16 May 2019) was an Australian politician and union organiser who served as the 23rd prime minister of Australia from 1983 to 1991, holding office as the leader of the Australian Labor Party (A ...
and Treasurer
A treasurer is the person responsible for running the treasury of an organization. The significant core functions of a corporate treasurer include cash and liquidity management, risk management, and corporate finance.
Government
The treasury o ...
Paul Keating
Paul John Keating (born 18 January 1944) is an Australian former politician and unionist who served as the 24th prime minister of Australia from 1991 to 1996, holding office as the leader of the Australian Labor Party (ALP). He previously serv ...
floated the dollar, with the exchange rate reflecting the balance of payments
In international economics, the balance of payments (also known as balance of international payments and abbreviated BOP or BoP) of a country is the difference between all money flowing into the country in a particular period of time (e.g., a ...
as well as supply and demand on international money markets. The decision was made on 8 December 1983 and announced on 9 December 1983.
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. It returned to above 96 US cents in June 2008, 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. The currency then traded above parity for a sustained period of several days in November, and fluctuated around that mark into 2011. On 27 July 2011, the dollar hit a record high since floating, at $1.1080 against the US dollar. Some commentators speculated that its high value that year was related to Europe's sovereign debt crisis, and Australia's strong ties with material importers in Asia and in particular China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
.
Since the end of the China's large-scale purchases of Australian commodities in 2013, however, the Australian dollar's value versus the US dollar has since plunged to $0.88 as of end-2013, and to as low as $0.57 in March 2020. As of 2021, it has traded at a range of $0.71 to $0.80.
Determinants of value
In 2016, the Australian dollar was the fifth most traded currency in world foreign exchange market
The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all aspec ...
s, accounting for 6.9% of the world's daily share (down from 8.6% in 2013) behind the United States dollar
The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the officia ...
, the euro
The euro ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...
, the Japanese yen
The is the official currency of Japan. It is the third-most traded currency in the foreign exchange market, after the United States dollar (US$) and the euro. It is also widely used as a third reserve currency after the US dollar and the ...
and the pound sterling
Sterling (abbreviation: stg; Other spelling styles, such as STG and Stg, are also seen. ISO code: GBP) is the currency of the United Kingdom and nine of its associated territories. The pound ( sign: £) is the main unit of sterling, and t ...
.
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.
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. 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
A reserve currency (or anchor currency) is a foreign currency that is held in significant quantities by central banks or other monetary authorities as part of their foreign exchange reserves. The reserve currency can be used in international tran ...
and one of the most traded currencies in the world. Other factors in its popularity include a relative lack of central bank intervention, and general stability of the Australian economy and government. In January 2011 at the World Economic Forum
The World Economic Forum (WEF) is an international non-governmental and lobbying organisation based in Cologny, canton of Geneva, Switzerland. It was founded on 24 January 1971 by German engineer and economist Klaus Schwab. The foundation, ...
in Davos
, neighboring_municipalities= Arosa, Bergün/Bravuogn, Klosters-Serneus, Langwies, S-chanf, Susch
, twintowns =
}
Davos (, ; or ; rm, ; archaic it, Tavate) is an Alpine resort town and a municipality in the Prättigau/Davos R ...
, Switzerland
). Swiss law does not designate a ''capital'' as such, but the federal parliament and government are installed in Bern, while other federal institutions, such as the federal courts, are in other cities (Bellinzona, Lausanne, Luzern, Neuchâtel ...
, Alexey Ulyukaev
Alexey Valentinovich Ulyukaev ( rus, Алексе́й Валенти́нович Улюка́ев, , ɐlʲɪkˈsʲej vəlʲɪnʲˈtʲinəvʲɪtɕ ʊlʲʊˈka(j)ɪf; born 23 March 1956) is a Russian politician, scientist, and economist. Between 24 ...
announced that the Central Bank of Russia
The Central Bank of the Russian Federation (CBR; ), doing business as the Bank of Russia (russian: Банк России}), is the central bank of the Russian Federation. The bank was established on July 13, 1990. The predecessor of the bank can ...
would begin keeping Australian dollar reserves.
Current exchange rates
Legal tender
Australian notes are legal tender
Legal tender is a form of money that courts of law are required to recognize as satisfactory payment for any monetary debt. Each jurisdiction determines what is legal tender, but essentially it is anything which when offered ("tendered") in pa ...
throughout Australia by virtue of the ''Reserve Bank Act 1959'', s.36(1),[ without an amount limit. Part IV of the ''Currency Act 1965'' similarly provides that Australian coins intended for general circulation are also legal tender, but only for the following amounts:
* 1c and 2c coins (withdrawn from circulation from February 1992, but still legal tender): for payments not exceeding 20¢
* 5c, 10c, 20c and 50c (of any combination): for payments not exceeding $5
* $1 coins: for payments not exceeding $10
* $2 coins: for payments not exceeding $20
* Non-circulating $10 coins: for payments not exceeding $100
* Coins of other denominations: no lower limit
Although the ''Reserve Bank Act 1959'' and the ''Currency Act 1965'' establishes that Australian banknotes and coins have legal tender status, Australian banknotes and coins do not necessarily have to be used in transactions and refusal to accept payment in legal tender is not unlawful. A provider of goods or services may specify the payment method before a "contract" is entered into, such as in the case of online transactions. If a provider of goods or services specifies another means of payment prior to the contract, then there is usually no obligation for legal tender to be accepted as payment. This is the case even when an existing debt is involved. However, refusal to accept legal tender in payment of an existing debt, where no other means of payment/settlement has been specified in advance, conceivably may have legal consequences.]
See also
* Banking in Australia
Banking in Australia is dominated by four major banks: Commonwealth Bank, Westpac, Australia & New Zealand Banking Group and National Australia Bank. There are several smaller banks with a presence throughout the country, and a large number of o ...
* Brass razoo
''Brass razoo'' is an Australian phrase that was first recorded in soldiers' slang in World War I. It is defined in the Oxford English Dictionary as "a non-existent coin of trivial value". It is commonly used in the expression ''I haven't got a ...
* 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 as well as British currency was used, but in 1910, a decade after federation, Australian co ...
* Economy of Australia
Australia is a highly developed country with a mixed-market economy. As of 2022, Australia was the 14th-largest national economy by nominal GDP (Gross Domestic Product), the 20th-largest by PPP-adjusted GDP, and was the 22nd-largest goods ...
* 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 subsidiar ...
* Section 51 (xii) of the Constitution of Australia
Section 51 (xii): is a subsection of Section 51 of the Constitution of Australia, that gives the Commonwealth Parliament the right to legislate with respect to “currency, coinage, and legal tender.”
Generally, powers in section 51 of the Con ...
Other main currencies
* United States dollar
The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the officia ...
* Euro
The euro ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...
* Japanese yen
The is the official currency of Japan. It is the third-most traded currency in the foreign exchange market, after the United States dollar (US$) and the euro. It is also widely used as a third reserve currency after the US dollar and the ...
* Pound sterling
Sterling (abbreviation: stg; Other spelling styles, such as STG and Stg, are also seen. ISO code: GBP) is the currency of the United Kingdom and nine of its associated territories. The pound ( sign: £) is the main unit of sterling, and t ...
* Canadian dollar
The Canadian dollar ( symbol: $; code: CAD; french: dollar canadien) is the currency of Canada. It is abbreviated with the dollar sign $, there is no standard disambiguating form, but the abbreviation Can$ is often suggested by notable style ...
* Swiss franc
The Swiss franc is the currency and legal tender of Switzerland and Liechtenstein. It is also legal tender in the Italian exclave of Campione d'Italia which is surrounded by Swiss territory. The Swiss National Bank (SNB) issues banknotes and the f ...
Notes
References
Citations
Sources
*
*
External links
Sound recording of 1966 Decimal Currency radio advertisement
held at the National Archives of Australia
The National Archives of Australia (NAA), formerly known as the Commonwealth Archives Office and Australian Archives, is an Australian Government agency that serves as the national archives of the nation. It collects, preserves and encourages ...
Reserve Bank of Australia: Current Banknotes
* Th
Perth Mint
is Australia's precious metals mint, making non-circulating/collector coins in silver, gold, and platinum
Platinum is a chemical element with the symbol Pt and atomic number 78. It is a dense, malleable, ductile, highly unreactive, precious, silverish-white transition metal. Its name originates from Spanish , a diminutive of "silver".
Platinu ...
.
Note Printing Australia
is the printer of Australia's notes, and also inventor of the abovementioned polymer banknotes, and world exporter of this technology.
* Th
Money Tracker
site allows users to track Australian banknotes as they circulate around Australia.
Images of historic and modern Australian bank notes
* ttps://www.rba.gov.au/statistics/historical-data.html?v=2022-09-25-02-11-35#exchange-rates Reserve Bank of Australia – historical data of AUD since 1969 (various .xls files)
– historical exchange rates of AUD/USD (from the year 1800 to present time).
– historical chart of AUD/USD (from the year 1800 to present time).
{{Authority control
Circulating currencies
Currencies of Australia
Currencies of the Commonwealth of Nations
Dollar
Dollar, Australian
Currencies introduced in 1966
Articles containing video clips
Foreign trade of Australia
1966 establishments in Australia