Australian dollar

Kiribati, Nauru, Tuvalu

1 EUR = 1.481 AUD 1 AUD = 0.67522 EUR

1 CHF = 1.2105 AUD 1 AUD = 0.82613 CHF

The Australian dollar is the currency of Australia, which is issued by the Reserve Bank of Australia ( RBA). Furthermore, it is passed as an official currency of Kiribati, Nauru and Tuvalu. The Australian dollar is ranked 6 of the most-traded currency in the world, behind the U.S. dollar, the euro, the yen, the pound sterling and the Swiss franc.

The Australian Dollar is divided into 100 cents. The banknotes of 5, 10, 20, 50 and 100 dollars are printed by the Australian banknote printing, the Note Printing Australia. There are coins of 5, 10, 20 and 50 cents, and 1 and 2 dollars. These are mainly from the Royal Australian Mint ( Royal Australian Mint dt ) were prepared. The embossing of the 1 - and 2- cent coins was terminated in 1992.

The common abbreviation within Australia is the dollar sign ($ ); A $ or AU $ sometimes used to distinguish it from other dollar currencies. It was nicknamed the " Aussie ".

• 2.1 Issue of banknotes
• 2.2 Issue of coins

• 4.1 Introduction of the synthetic polymer banknotes
• 4.2 First complete series of polymer notes
• 4.3 Reasons for banknotes on polymer substrate base
• 4.4 Advantages of polymer notes
• 4.5 Export of polymer grade

History

1910, the Australian pound was introduced as a separate currency for Australia, which was maintained until 1966. It was just like the British pound is divided into 20 shillings and 240 pence.

Bretton Woods

From 1 to 22 July 1944, 44 states gathered in Bretton Woods, New Hampshire, to discuss the reorganization of the weakened world economy as a result of the Second World War. It should be important monetary, trade and payments issues are presented for discussion. As a result of the meeting of the International Monetary Fund was established, which Australia joined in 1947. The U.S. dollar was established as the leading international, reserve and transaction currency. The U.S. dollar thus became the basic unit for conversion into gold ( 35 U.S. $ / oz). Furthermore, fixed exchange rates have been set to other currencies. Also, the Australian dollar was coupled with the introduction in February 1966 to the U.S. dollar. From the mid- 60s, the Bretton Woods system was increasingly vulnerabilities. Due to the different fast-growing economies was a particular exchange rate adjustment, unlike the Bretton Woods system, indispensable.

Introduction of decimal currency system

In an international comparison was on the English coinage system on which the Australian based, as outdated and complicated, and Australia was one of the last countries that used it. Therefore, a change was planned long term.

1963, the Australian government decided to replace this system with a decimal system and issue a new series of banknotes. The decimal system is characterized in that the main unit of currency is divided by powers of ten. The smallest subunit is usually one hundredth of the main currency unit. In the decimal system of the Australian dollar is $ 1 A the base and is divided into 100 cents.

An important change in the course of the conversion of the currency system involved the name of the new currency unit. In order to find a suitable name for the new currency, the Australian government launched a call to gather suggestions for names. The name suggestions varied from traditional names like "Pound " and " dollars ", to specifically Australian names such as " Australasia ". Also very exotic creations such as "Boomer ", " Oz ", " Kanga " or " Emu " were mentioned there. As no agreement could be reached, the government decided to give the name "Royal", as this will emphasize the connection to the crown and the Australian currency is worthy name in June 1963, the new currency.

On September 19, 1963, however, the government announced that the name of the future monetary unit "dollar " since they could not withstand the strong resistance to the term " Royal". This decision met with general approval. Before the introduction of decimal currency, however, a targeted program was necessary to inform the public and to familiarize yourself with the new counting method. This included an extensive coverage in the media, hands-on learning by using play money in the schools as well as detailed brochures that explained the change and darlegten the impact on commodity prices. A campaign to explain the new system was the Dollar Bill campaign, which was launched in 1965. As an introduction date of the new decimal currency February 14, 1966 has been set, and according to this plan, the currency was decimalized on 14 February 1966. A pound was exchanged for two dollars.

1971 Australia decided to end the established relationship with the U.S. dollar and get out of the system of fixed exchange rates. Other countries got out of the system of fixed exchange rates, which finally led to the collapse of the Bretton Woods system in 1973. At the direction of the government further monetary systems were introduced, none of which proved to be competitive on the international market. During the 1970s, Australia's economic performance deteriorated immensely, economic growth was barely present. Inflation and unemployment rose. 1976, the AU $ was devalued by 17.6 percent.

The trade weighted index (TWI) has been introduced. This index represents a basket of currencies represents the currencies are introduced weighted differently. The proportion of the national currencies shall be determined by the importance that the country has for Australia's import and export business. The TWI provides information on the international competitiveness of Australia.

Control of the financial system

According to the Reserve Bank Act 1959 was the Reserve Bank of Australia ( RBA), the central banks of Australia, the responsibility for the regulation of the note issue, more specifically awarded for the manufacture, issue, reissue and withdrawal of banknotes of Australia and the currency control. However, the Australian dollar was subject to in the 70s largely controlled by the government, as well as the entire Australian financial market. Aim of these checks was the creation of a market that allowed the government to support himself and finance. Furthermore, should any risks that were associated with the banking business, be avoided by monitoring by the government. Stable exchange rates should be achieved. All savings should be invested domestically. Loans were issued specifically. Were favored for construction of residential and agriculture. Control measures were, for example:

• Control and determination of the interest rate on loans and deposits
• Control of key economic indicators such as liquidity and balance sheet
• Monitoring the amount of the occasion and the lending
• Banking institutions received precise instructions on their room for maneuver.

Abolition of checks

From the early 1970s until the mid- 1980s, the controls were gradually abolished and the financial market has been eased. International capital flows increased after the collapse of the Bretton Woods system rapidly, which put pressure on the Australian exchange rate. The government could only stabilize the exchange rate by intervening in the foreign exchange market, but domestic liquidity strongly limited, since it had to be raised large sums of money. The relaxation process began in 1973 with the elimination of controls on the interest rate. This was the first small step to a free financial market. In subsequent years, the Australian market for foreign banks was opened. Furthermore, the establishment of domestic banks was facilitated. In December 1983, a flexible currency system was introduced and the Australian dollar was first traded on the foreign exchange market. Since then, the exchange rate determined by supply and demand conditions in the foreign exchange market. Since the IPO, the AU $ RBA attacks still active in the foreign exchange market.

Development of the Australian dollar today

In the 90 years the Australian financial market developed rapidly and Australia's economy has been gradually integrated into the world economy. The Australian dollar gained increasing importance. In 1997, the Asian crisis began in Thailand, Korea and Indonesia, before Russia and Latin America hit a financial crisis. This meant for Australia slumps on the export market, which led to strong fluctuations of the Australian dollar. This put a curb and RBA -actuated many transactions on the foreign exchange market to stabilize the exchange rate. The central bank interventions included the buying or selling of the U.S. dollar according to the particular situation. During the Russian crisis call options were issued to the Australian dollar, which you could buy these at a predetermined exchange rate. 2008 also took the global financial crisis impact on the value and history of the Australian dollar. Overall, the RBA intervened today only at an average of 5 % of all trading days.

First Edition of the Australian dollar

Issue of banknotes

The issuance of the notes made ​​by the Reserve Bank of Australia.

The first paper editions of the Australian dollar in nominal value of the 1 -, 2 -, 10 - and 20 -A $ bill were the exact equivalents to the previous pound notes. The 5 -A $ bill was issued only in 1967, after the public had become accustomed to the decimal currency system. 1973 - A $ 50 note and 1984, the 100 -A $ -Note has been introduced. 1984 $ 1-A -Note and the 1988 2-A $ - note by the simultaneous introduction of the one was - and 2-A $ coin replaced.

The RBA puts great emphasis on ensuring a high quality of notes in circulation. This will strengthen them and ensure confidence in the currency of Australia. For this purpose, quality standards have been set in the so-called "Note Sorting Guide". From time to time orders the RBA to take the bills from circulation. The bills are then checked for quality and authenticity. This allows the RBA to monitor the quality and authenticity of the banknotes in circulation and to ensure their future suitability. True, but no longer suitable notes are destroyed, genuine notes are suitable for newly issued to commercial banks. Counterfeit banknotes are handed over to the Australian Federal Police.

Issuance of euro coins

The responsibility for the issuance of euro coins is the responsibility of the Royal Australian Mint. 1966 coins with the face value of 1, 2, 5, 10, 20, and 50 cents were introduced.

One cent coin

The 1 cent coin was introduced on 14 February 1966, kept her design to this day. On 21 August 1990 it was announced that the output of the 1- cent coin should be set from February 1992, but it continues to apply as legal tender.

Two cent coin

The history of the two - cent coin takes the same course as that of the 1- cent coin.

5 cent coin

The design of the 5 - cent coin has not changed since the introduction. All 5-cent coins were introduced in 1966, were minted in the British Royal Mint in London.

10 cent coin

Today's reverse of the 10 cent coin is identical to that of 1966. Too, every 10 - cent coins were minted in London, all subsequent editions in other mints.

20 cent coin

The original appearance of the 20 - cent coin from 1966 remained unchanged until 1995; However, there have been several special issues. The first coins were all influenced by the British Royal Mint in London.

50 cent coin

The coin with the highest denomination at the time of launch on February 14, 1966, the 50 - cent coin contained 80 % silver. Due to the rising price of silver, the value of the coin by far exceeded the actual face value and was therefore replaced by a copper -nickel alloy 1968. Another reason for the transformation of the coin was the strong similarity to the 20 - cent coin, which is why the new 50 - cent coin is twelve square instead of rounded like the 20 - cent coin.

1 Dollar Coin

The 1-A $ coin was introduced on 14 May 1984. The planning of the 1-A $ coin already started in the mid 70s. Already at that time it became clear that it required a higher value coin that could be used in vending machines. The $ 1-A -Note should be replaced, as they was able to record a short life due to the high turnover rate.

Two dollar coin

The 2-A $ coin was put into circulation on June 20, 1988. As the 1-A $ coin should also include the 2-A $ coin replace the strong undrawn A $ 2 bill.

Current bank notes and coins of the Australian dollar

• Elizabeth II ( b. 1926 ), Head of State of Australia
• Parliament building

• Banjo Paterson (1864-1941), writer
• Dame Mary Gilmore (1865-1962), writer

• Mary Reibey (1777-1855), philanthropist
• John Flynn (1880-1951), founder of the Royal Flying Doctor Service of Australia

• David Unaipon (1872-1967), inventor
• Edith Cowan (1861-1932), politician

• Dame Nellie Melba (1861-1931), opera singer
• Sir John Monash (1865-1931), General

• Sir Henry Parkes (1815-1896), politician
• Catherine Helen Spence (1825-1910), writer

These notes attacked the themes of the previous notes again, showed the social and cultural diversity of Australia and acknowledged scientific achievements by portraits of prominent men and women of the Australian story.

All coins bear the portrait of Queen Elizabeth II on the front. The original round 50 cent coin minted from 1969 in dodecagonal shape. The 97% copper produced 1 - and 2-cent coins were withdrawn from circulation in early 1992. In cash transactions Amounts are rounded to 5 cents.

Polymer banknotes

Introduction of synthetic polymer banknotes

The banknotes of Australia were switched from a paper on a synthetic polymer substrate base (also plastic or plastic) and significantly revised. This polymer technology was developed by the Commonwealth Scientific and Industrial Research Organisation ( CSIRO ), the national authority for scientific and industrial research. In 1985, the first synthetic polymer substrate note was taken as a sample copy in circulation. It was a 10 -A $ commemorative note in honor of the 200th anniversary of Australia in 1988.

First complete series of polymer notes

The test of the polymer technology was considered a great success. A complete series of polymer banknotes from 5 to 100 A $ was then made ​​between 1992 and 1996. In July 1992, the 5 -A $ - note was introduced, which was revised again in April 1995 in color, so that they better differ from the introduced in November 1993, 10 -A $ -Note can. In October 1994, the 20 -A $ - note was brought in October 1995 and the 50 -A $ - note in circulation. In May 1996, the 100 -A $ - note followed.

Reasons for banknotes on polymer substrate base

The Australian Government had set itself the goal of making the Australian dollar to one of the safest currencies with the most modern safety features. However, it came in the year of introduction, a scandal came as a fake 10 -A $ - notes in circulation. This was the occasion for a partnership between the RBA and the CSIRO to develop new technologies that would make the new currency safer. The need for a change of the bills has been reinforced in the 70s and 80s by the increasing availability of high-quality photocopier technology. For now, the CSIRO has focused on the development of a hologram -like, diffractive optically variable feature. Since such has better visual impact on a smooth surface, it was decided for this feature as the most important safety element for the new banknotes. After several years, the focus shifted, however, from diffractive optically variable elements towards favorable safety precautions. A see-through window, which was not possible on paper notes, has been used and proved to be cheaper and just as effective.

Advantages of polymer notes

While polymer technology was developed for currencies to make it harder to counterfeit and more expensive, it also has advantages over paper money in terms of durability and recyclability. Polymer notes last about four times longer than paper money. The polymer substrate is more robust and more resistant to damage from moisture, dirt, oil and household chemicals. This improved stability is reflected in the reduction in the number of declining banknotes. A major benefit to the environment is that polymer banknotes can be recycled, whereas waste can only be buried or burned out paper bills. Polymer banknotes that are no longer useful, are granulated, melted, and then recycled.

Export of polymer grade

The end of 2008 there were already their bills based 25 countries from all regions of the world in Australia's polymer technology. This development represents a stark contrast to the situation at the end of the 19th century, when Australia had to import all technologies and all know- how of music printing.

In 1990, the technique of Singapore was adopted in 1991, Papua New Guinea, 1991 Western Samoa, 1993 by Kuwait, 1994 by Indonesia, 1996 by Brunei, 1996 by Thailand, 1998 by Malaysia, 1998 by Sri Lanka, 1999 by New Zealand, 1999 by Northern Ireland 1999 by Romania, 1999 Taiwan, 2000 by Bangladesh, 2000 by Brazil, in 2001 by China, in 2001 by the Solomon Islands, 2001 by Vietnam, 2002 Mexico, 2002 by Nepal, 2003 by Zambia, 2004 by Chile, 2007 by Guatemala, 2007 of Hong Kong, 2007 by Nigeria. and 2008 partly by Israel.

Safety Features

Add notes special features are incorporated specifically to distinguish genuine banknotes from counterfeits can. Using a combination of several security features counterfeiting of banknotes to be made almost impossible:

Exchange rates

The proportion of the Australian dollar in the total number of transactions in the foreign exchange market amounted to about 6 percent. He is the sixth most traded currency in the world. The value of the Australian dollar equivalent from September 1973 to August 1974 1.4875 U.S. $ and had thus its historic high. In September 2001, however, the previous low of a value of 0.4923 U.S. $ was recorded.

In exchange for the euro had the Australian dollar in January 2000 its record high at a value of 0.6509 euros. In February 2009, the Australian dollar only corresponded to a value of 0.5069 euros.

Inflation

Within the 1990s changed many countries that high inflation had recorded, the so-called inflation targeting. In this case, monetary policy is oriented directly to inflation. Australia moved in 1993 to the strategy of the direct inflation targeting. In this concept, the role of monetary stability is provided as an objective of monetary policy in the foreground. Objectives of monetary policy monetary stability, full employment, economic success and well-being of the population. To achieve these goals, the RBA focused price stability. There was a limit of 3 % fixed, which in the medium term should not exceed the rate of inflation. The current inflation rate amounted to 1.3%.

Extended scope

The Australian dollar is on Kiribati, Tuvalu and Nauru in addition to the local currency as legal tender. An introduction of the Australian dollar is discussed as a unit of currency for the Pacific Islands in the literature. Even the International Monetary Fund has already been proposed. Here, the Australian is against the New Zealand dollar considered appropriate.

Possible elimination of the 5- cent coin

According to press reports from the summer of 2011, the Australian Mint, the Australian Government has pointed out, in a confidential letter that the preparation of the 5 - cent coin, which consists of 75% copper and 25% nickel, is more expensive than the nominal value. Incidentally, it was unnecessary because many cash paid in Australia. The government said that the removal of the coin would result in fund-raising problems and retailers would be able to use the loss to the rounding up of prices. A decision is still pending.