Australian dollar#Adoption of the dollar

Section 51(xii) of the Constitution of Australia gives the Commonwealth (federal) Parliament the power to legislate with respect to "currency, coinage, and legal tender".{{Cite Legislation AU|Cth|act|coaca430|Australian Constitution|51}}(xii) The states are not allowed to coin money, in accordance with section 115 which provides that "[a] State shall not coin money, nor make anything but gold and silver coin a legal tender in payment of debts".{{Cite Legislation AU|Cth|act|coaca430|Australian Constitution|115}} Australian coins are now produced at the Royal Australian Mint in Canberra.

{{Redirect|Australian Royal|Australian royalty|Monarchy of Australia}}

{{Main|History of Australian currency}}

Before Federation in 1901, the six colonies that comprised Australia had separate currencies, all of which closely replicated the British currency system, and were usually exchangeable with each other on a one-to-one basis. Hence Federation was not seen as urgently requiring a single, unified currency. For another 10 years, colonial banknotes and coins continued to be the main circulating currencies.

In 1902, a select committee of the House of Representatives, chaired by George Edwards, had recommended that Australia adopt a single, national decimal currency, with a pound divided into ten florins and each florin comprising 100 cents.{{cite news |url = https://www.aph.gov.au/Parliamentary_Business/Committees/House_of_Representatives_Committees?url=reports%2F1902%2F1902_ppd4.pdf |title = Report from the Select Committee on Coinage |publisher = Commonwealth of Australia |date = 3 April 1902 |access-date = 31 October 2019 |archive-date = 19 December 2019 |archive-url = https://web.archive.org/web/20191219173736/https://www.aph.gov.au/Parliamentary_Business/Committees/House_of_Representatives_Committees?url=reports%2F1902%2F1902_ppd4.pdf |url-status = live }} However, the recommendation was not acted upon.

The Australian pound (A£) was introduced in 1910, at par with the pound sterling (A£1 = UK£1). Like the UK pound, it was divided into 240 pence, or 20 shillings (each comprising 12 pence). In December 1931, the Australian currency was devalued by 25%, so that one pound five shillings Australian was equivalent to one pound sterling.{{Cite web |url=https://treasury.gov.au/sites/default/files/2019-03/03_Colin_Clark_speech.pdf |title=What have we learnt? The Great Depression in Australia from the perspective of today |website=Treasury |publisher=Government of Australia |access-date=17 March 2023 |page=37 |first1= David |last1=Gruen |first2=Colin |last2=Clark}}

In 1937, a banking royal commission, appointed by the Lyons government, recommended that Australia adopt "a system of decimal coinage ... based upon the division of the Australian pound into 1000 parts".{{cite news |url = https://museum.rba.gov.au/exhibitions/the-decimal-revolution/a-new-currency/ |title = A New Currency |publisher = Reserve Bank of Australia Museum |access-date = 17 October 2019 |archive-date = 29 November 2019 |archive-url = https://web.archive.org/web/20191129032752/https://museum.rba.gov.au/exhibitions/the-decimal-revolution/a-new-currency/ |url-status = live }}{{Cite report |url=https://parlinfo.aph.gov.au/parlInfo/download/publications/tabledpapers/HPP052016003213/upload_pdf/HPP052016003213_1937_74.pdf;fileType=application%2Fpdf#search=%22publications/tabledpapers/HPP052016003213%22 |title=Royal Commission appointed to inquire into the monetary and banking systems at present in operation in Australia |date=24 August 1937}} This recommendation was not accepted either.

In February 1959, treasurer Harold Holt appointed a Decimal Currency Committee, chaired by Walter D. Scott, to examine the merits of decimalisation. The committee reported in August 1960 in favour of decimalisation and proposed that a new currency be introduced (from February 1963), to be modelled on South Africa's replacement of the South African pound with the rand (worth 10 shillings or {{frac|2}} pound). The Menzies government announced its support for decimalisation in July 1961, but delayed the process in order to give further consideration to the implementation process.{{cite news |url=https://www.abs.gov.au/ausstats/abs@.nsf/featurearticlesbytitle/9A953DE15F376525CA256F2A00073477?OpenDocument |title=Report of the 1959 Decimal Currency Committee |publisher=Australian Bureau of Statistics |year=1959 |access-date=17 October 2019 |archive-date=22 December 2019 |archive-url=https://web.archive.org/web/20191222144523/https://www.abs.gov.au/ausstats/abs@.nsf/featurearticlesbytitle/9A953DE15F376525CA256F2A00073477?OpenDocument |url-status=live }} 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. This was reduced to a shortlist of seven names: austral, crown, dollar, pound, regal, tasman and royal.{{Cite book |last=Curran |first=James |title=The unknown nation: Australia after empire |last2=Ward |first2=Stuart |date=2010 |publisher=Melbourne University Publishing |isbn=978-0-522-85645-3 |location=Carlton, Vic |page=94}} 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".{{cite news |url = https://www.moadoph.gov.au/blog/the-introduction-of-decimal-currency-how-we-avoided-nostrils-and-learned-to-love-the-bill/ |title = The Introduction of Decimal Currency: How We Avoided Nostrils and Learned to Love the Bill |publisher = Museum of Australian Democracy |access-date = 17 October 2019 |archive-date = 20 December 2019 |archive-url = https://web.archive.org/web/20191220113518/https://www.moadoph.gov.au/blog/the-introduction-of-decimal-currency-how-we-avoided-nostrils-and-learned-to-love-the-bill/ |url-status = live }}

The pound was replaced by the dollar on 14 February 1966{{cite web |title=Introducing the New Decimal Banknotes |url=http://museum.rba.gov.au/displays/rba-currency-reform/#introducing-the-new-decimal-banknotes |website=Reserve Bank of Australia Museum |publisher=Reserve Bank of Australia |access-date=31 December 2015 |archive-url=https://web.archive.org/web/20160427094349/http://museum.rba.gov.au/displays/rba-currency-reform/#introducing-the-new-decimal-banknotes |archive-date=27 April 2016 |url-status=dead }} with the conversion rate of A$2 = A£1. For example, a pre-decimal amount of nine pounds, sixteen shillings and sixpence (£9 16s 6d) became $19.65 in terms of dollars and cents. Since Australia was still part of the fixed-exchange sterling area, the exchange rate was fixed to the pound sterling at a rate of A$1 = 8s sterling (or £1 stg = A$2.50, and in turn £1 stg = 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, Cocos (Keeling) Islands, and Norfolk Island; and is also official currency in Kiribati, Nauru, and Tuvalu. It was legal tender in Papua New Guinea until 31 December 1975 when it was replaced by the kina, and in Solomon Islands until 1977 when it was replaced by the Solomon Islands dollar.

{{Main|Coins of the Australian dollar}}

In 1966, coins were introduced in denominations of 1 and 2 cents (bronze); 5, 10, and 20 cents (cupronickel; 75% copper, 25% nickel); and 50 cents (silver, then cupronickel). The 50-cent coins in 80% silver were no longer minted after March 1968 due to the intrinsic value of the silver content rising to exceed the face value of the coins.{{Cite web |title=Fifty Cents |url=https://www.ramint.gov.au/fifty-cents |access-date=2024-05-14 |website=Royal Australian Mint |date=8 January 2016 |publisher=Australian Government |language=en-AU}} Aluminium bronze (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. In everyday Australian parlance, these coins collectively are referred to as "gold coins". 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, which is located in the nation's capital, Canberra. 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 {{Convert|15.55|g|oz}} and a diameter of {{Convert|31.51|mm|in|frac=32}}, the Australian 50-cent coin is one of the largest coins used in the world today.

{{See also|Australian commemorative coins}}

The Royal Australian Mint also has an international reputation for producing quality numismatic coins. It has first issued commemorative 50-cent coins in 1970, commemorating James Cook'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 and Lady Diana Spencer in 1981, the Brisbane Commonwealth Games in 1982, and the Australian Bicentenary 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, the 2006 mint proof 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.{{Cite news |url=https://www.abc.net.au/news/2013-05-09/first-triangular-coin-celebrates-parliament-birthday/4679654 |title=Triangular coin celebrates Parliament House's birthday |work=ABC News |date=8 May 2013 |access-date=25 September 2022 |archive-url=https://web.archive.org/web/20130511002654/https://www.abc.net.au/news/2013-05-09/first-triangular-coin-celebrates-parliament-birthday/4679654 |archive-date=11 May 2013 |url-status=live}}

{{Main|Banknotes of the Australian dollar}}

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.History of Banknotes http://banknotes.rba.gov.au/australias-banknotes/history/ {{Webarchive|url=https://web.archive.org/web/20151025162900/http://banknotes.rba.gov.au/australias-banknotes/history/ |date=25 October 2015 }}

The $1 banknote was replaced by a $1 coin in 1984, while the $2 banknote was replaced by a smaller $2 coin in 1988.{{Cite web |url=http://museum.rba.gov.au/displays/rba-currency-reform/#inflation-and-the-note-issue |title=The Reserve Bank and Reform of the Currency: 1960–1988, Inflation and the Note Issue |publisher=Reserve Bank of Australia |work=Reserve Bank of Australia Music um |access-date=31 December 2015 |archive-url=https://web.archive.org/web/20160427094349/http://museum.rba.gov.au/displays/rba-currency-reform/#inflation-and-the-note-issue |archive-date=27 April 2016 |url-status=dead}} Although no longer printed, all previous notes of the Australian dollar remain legal tender.{{cite web|url=http://banknotes.rba.gov.au/legal/deliberate-damage/|title=DELIBERATE DAMAGE|publisher=Reserve Bank of Australia|quote=All Australian banknotes, present and all past issues, are lawfully current in Australia.|work=Legal|access-date=9 February 2015|archive-date=4 March 2015|archive-url=https://web.archive.org/web/20150304102856/http://banknotes.rba.gov.au/legal/deliberate-damage/|url-status=live}}

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, culminating in the introduction of the first polymer banknote in 1988.

Australia was the first country to produce polymer banknotes,{{Cite news |url=https://www.bbc.co.uk/news/magazine-20071644 |work=BBC News |title=Wi-fi, dual-flush loos and eight more Australian inventions |date=8 November 2012 |access-date=25 September 2022 |archive-url=https://web.archive.org/web/20121108070446/https://www.bbc.co.uk/news/magazine-20071644 |archive-date=8 November 2012 |url-status=live}} more specifically made of polypropylene polymer, which were produced by Note Printing Australia. These 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{{Cite web|url=https://www.banknotes.rba.gov.au/australias-banknotes/other-banknotes/index.html|title=Other Banknotes|website=Reserve Bank of Australia Banknotes|access-date=10 October 2021|archive-date=31 March 2022|archive-url=https://web.archive.org/web/20220331123357/https://www.banknotes.rba.gov.au/australias-banknotes/other-banknotes/index.html|url-status=live}} 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 (1861–1931), and the distinguished soldier, engineer and administrator General Sir John Monash (1865–1931).{{Cite web |url=https://www.banknotes.rba.gov.au/australias-banknotes/banknotes-in-circulation/hundred-dollar/index.html |title=$100 Banknote |publisher=Reserve Bank of Australia Banknotes |access-date=10 October 2021 |archive-date=10 October 2021 |archive-url=https://web.archive.org/web/20211010090612/https://www.banknotes.rba.gov.au/australias-banknotes/banknotes-in-circulation/hundred-dollar/index.html |url-status=live}}
• The $50 note features Aboriginal writer and inventor David Unaipon (1872–1967), and Australia's first female parliamentarian, Edith Cowan (1861–1932).{{Cite web |url=https://www.banknotes.rba.gov.au/australias-banknotes/banknotes-in-circulation/fifty-dollar/index.html |title=$50 Banknote |publisher=Reserve Bank of Australia Banknotes |access-date=10 October 2021 |archive-date=10 October 2021 |archive-url=https://web.archive.org/web/20211010090607/https://www.banknotes.rba.gov.au/australias-banknotes/banknotes-in-circulation/fifty-dollar/index.html |url-status=live}}
• The $20 note features the founder of the world's first aerial medical service (the Royal Flying Doctor Service), the Reverend John Flynn (1880–1951), and Mary Reibey (1777–1855), who arrived in Australia as a convict in 1792 and went on to become a successful shipping magnate and philanthropist.{{Cite web |url=https://www.banknotes.rba.gov.au/australias-banknotes/banknotes-in-circulation/twenty-dollar/index.html |title=$20 Banknote |publisher=Reserve Bank of Australia Banknotes |access-date=10 October 2021 |archive-date=10 October 2021 |archive-url=https://web.archive.org/web/20211010090610/https://www.banknotes.rba.gov.au/australias-banknotes/banknotes-in-circulation/twenty-dollar/index.html |url-status=live}}
• The $10 note features the poets Banjo Paterson (1864–1941) and Dame Mary Gilmore (1865–1962). This note incorporates micro-printed excerpts of Paterson's and Gilmore's work.{{Cite web |url=https://www.banknotes.rba.gov.au/australias-banknotes/banknotes-in-circulation/ten-dollar/index.html |title=$10 Banknote |publisher=Reserve Bank of Australia Banknotes |access-date=10 October 2021 |archive-date=10 October 2021 |archive-url=https://web.archive.org/web/20211010090611/https://www.banknotes.rba.gov.au/australias-banknotes/banknotes-in-circulation/ten-dollar/index.html |url-status=live}}
• The $5 note features Queen Elizabeth II and Parliament House, Canberra, the national capital.{{Cite web |url=https://www.banknotes.rba.gov.au/australias-banknotes/banknotes-in-circulation/five-dollar/index.html |title=$5 Banknote |publisher=Reserve Bank of Australia Banknotes |access-date=10 October 2021 |archive-date=10 October 2021 |archive-url=https://web.archive.org/web/20211010090607/https://www.banknotes.rba.gov.au/australias-banknotes/banknotes-in-circulation/five-dollar/index.html |url-status=live}}

A special centenary issue of the $5 note in 2001 featured Sir Henry Parkes and Catherine Helen Spence. 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.{{Cite web |title=Campaign to put Fred Hollows on Australian $5 note |url=http://www.stuff.co.nz/world/australia/76236396/campaign-to-put-fred-hollows-on-australian-5-note |publisher=Stuff |date=25 January 2016 |access-date=25 September 2022 |archive-url=https://web.archive.org/web/20160127094516/https://www.stuff.co.nz/world/australia/76236396/campaign-to-put-fred-hollows-on-australian-5-note |archive-date=27 January 2016 |url-status=live}}{{Cite web |url=https://www.abc.net.au/news/2016-01-25/fred-hollows-on-five-dollar-bill-campaign/7111356 |title='Put Fred on a fiver': Call for Australian great to feature on banknote |last1=Vernon |first1=Jackson |last2=Dalzell |first2=Stephanie |date=25 January 2016 |publisher=ABC News |language=en-AU |access-date=25 August 2019 |archive-date=18 August 2020 |archive-url=https://web.archive.org/web/20200818070717/https://www.abc.net.au/news/2016-01-25/fred-hollows-on-five-dollar-bill-campaign/7111356 |url-status=live }}

Australia also prints polymer banknotes for a number of other countries through Note Printing Australia, a wholly owned subsidiary of the Reserve Bank of Australia. Note Printing Australia prints polymer notes or simply supplies the polymer substrate{{Cite web |url=http://www.bankofcanada.ca/wp-content/uploads/2011/06/spencer.pdf |page=4 |title=Paying with Polymer: Developing Canada's New Bank Notes |publisher=Bank of Canada |date=20 June 2011 |access-date=12 August 2015 |archive-url=https://web.archive.org/web/20110626150611/https://www.bankofcanada.ca/wp-content/uploads/2011/06/spencer.pdf |archive-date=26 June 2011 |url-status=live}} for a growing number of other countries including Bangladesh, Brunei, Chile, Kuwait, Malaysia, Mexico, Nepal, New Zealand, Papua New Guinea, Romania, Samoa, Singapore, Solomon Islands, Sri Lanka and Vietnam. Many other countries are showing a strong interest in the new technology.

On 27 September 2012, the Reserve Bank of Australia 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 featuresMedia Release: R.B.A.: Upgrading Australia's Banknotes http://www.rba.gov.au/media-releases/2012/mr-12-27.html {{Webarchive|url=https://web.archive.org/web/20130403141719/http://www.rba.gov.au/media-releases/2012/mr-12-27.html |date=3 April 2013 }} and include tactile features like Braille dots for ease of use of the visually impaired."Next Generation Banknotes: Additional Feature for the Vision Impaired". www.rba.gov.au (Press release). Media Office-Reserve Bank of Australia. 13 February 2015.{{Cite news |url=http://www.abc.net.au/news/2015-02-18/13yo-blind-boy-successfully-campaigns-for-tactile-banknotes/6144262 |title=RBA to introduce tactile banknotes after 13yo blind boy Connor McLeod campaigns for change |first=Nance |last=Haxton |access-date=19 February 2015 |publisher=ABC News |date=19 February 2015 |archive-url=https://web.archive.org/web/20150219034832/http://www.abc.net.au/news/2015-02-18/13yo-blind-boy-successfully-campaigns-for-tactile-banknotes/6144262 |archive-date=19 February 2015 |url-status=live}} All persons featured on the first polymer series were retained on the second polymer series. However, following the death of Queen Elizabeth II, the government has announced that the $5 note will be replaced with a design reflecting Indigenous history and culture.{{Cite web |last= |first= |date=2023-02-02 |title=Media Release: New $5 Banknote Design |url=https://www.rba.gov.au/media-releases/2023/mr-23-02.html |access-date= |website=Reserve Bank of Australia |language=en-AU}}

File:Euro exchange rate to AUD.svg

Prior to 1983, Australia maintained a fixed exchange rate. 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 = 16s 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, 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 £1 sterling = A£1 5s = A$2.50 = US$2.80. In 1967 Australia did not follow the pound sterling devaluation and remained fixed to the U.S. dollar 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 (TWI) in an effort to reduce the fluctuations associated with its tie to the US dollar.{{cite web |url=http://www.abs.gov.au/ausstats/abs@.nsf/90a12181d877a6a6ca2568b5007b861c/d4a22ad91e0348bfca256fd3007baf93!OpenDocument |title=1350.0 – Australian Economic Indicators, Mar 1998 |publisher=Australian Bureau of Statistics |date=8 December 2006 |access-date=19 April 2011 |archive-date=16 October 2015 |archive-url=https://web.archive.org/web/20151016030017/http://www.abs.gov.au/ausstats/abs@.nsf/90a12181d877a6a6ca2568b5007b861c/d4a22ad91e0348bfca256fd3007baf93!OpenDocument |url-status=live }} 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;{{cite book |title = World Currency Yearbook, 1984 |year=1985 |isbn=0-917645-00-6 |page=75 |editor-first = Philip P. |editor-last = Cowitt |publisher =International Currency Analysis }} 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.{{cite web |title = U.S. / Australia Foreign Exchange Rate |publisher = Federal Reserve Bank of St. Louis |url = http://research.stlouisfed.org/fred2/data/DEXUSAL.txt |access-date = 3 January 2020 |archive-date = 2 January 2016 |archive-url = https://web.archive.org/web/20160102151628/https://research.stlouisfed.org/fred2/data/DEXUSAL.txt |url-status = live }}

File:ABC Dollar Float.ogv news report on the first day of trading with a floating dollar.]]

In December 1983, the Australian Labor government led by Prime Minister Bob Hawke and Treasurer Paul Keating floated the dollar, with the exchange rate reflecting the balance of payments as well as supply and demand on international money markets. The decision was made on 8 December 1983 and announced on 9 December 1983.{{cite news |title = 20 years since Aussie dollar floated |url = http://www.abc.net.au/am/content/2003/s1005317.htm |access-date=14 October 2010 |publisher=Australian Broadcasting Corporation |date=8 December 2003 |archive-url=https://web.archive.org/web/20101011022103/http://www.abc.net.au/am/content/2003/s1005317.htm |archive-date=11 October 2010 |url-status=live}}

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.{{cite news |title=Global risk weighs on Howard's agenda |url=http://edition.cnn.com/2001/BUSINESS/asia/11/12/aust.economy.biz/ |access-date=14 October 2010 |publisher=CNN |date=12 November 2001 |archive-date=15 May 2011 |archive-url=https://web.archive.org/web/20110515140207/http://edition.cnn.com/2001/BUSINESS/asia/11/12/aust.economy.biz/ |url-status=live }} It returned to above 96 US cents in June 2008,{{cite news |title=Dollar Falls Before RBA Meeting: New Zealand's Drops |url=https://www.bloomberg.com/apps/news?pid=newsarchive&sid=aQV4HwdZoDek |access-date=14 October 2010 |publisher=Bloomberg |date=30 June 2008 |archive-date=11 May 2011 |archive-url=https://web.archive.org/web/20110511042749/http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aQV4HwdZoDek |url-status=live }} 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.{{Cite news |title=Dollar hits parity vs US dollar |url=https://www.reuters.com/article/idUSN1518042820101015 |access-date=15 October 2010 |work=Reuters |date=15 October 2010 |archive-url=https://web.archive.org/web/20101018073348/https://www.reuters.com/article/idUSN1518042820101015 |archive-date=18 October 2010 |url-status=live}} The currency then traded above parity for a sustained period of several days in November, and fluctuated around that mark into 2011.{{cite news |title = Dollar hits new post-float high after US central bank move |url=http://www.theaustralian.com.au/business/markets/australian-dollar-hits-new-post-float-high-after-us-central-bank-move/story-e6frg91o-1225947591487 |newspaper=The Australian |access-date=25 January 2011 |first=Bradley |last=Davis |date=4 November 2010 |archive-url=https://web.archive.org/web/20110122115604/http://www.theaustralian.com.au/business/markets/australian-dollar-hits-new-post-float-high-after-us-central-bank-move/story-e6frg91o-1225947591487 |archive-date=22 January 2011 |url-status=live}} On 27 July 2011, the dollar hit a record high since floating, at $1.1080 against the US dollar.{{Cite news |url = http://www.rttnews.com/ArticleView.aspx?Id=1611446 |access-date = 2 May 2011 |title = AUD/USD Slides After Topping 1.10 Level – Westpac |archive-date = 14 January 2023 |archive-url = https://web.archive.org/web/20230114143247/https://www.rttnews.com/story.aspx?Id=1611446 |url-status = live }} 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.{{Cite web |url=http://www.skynews.com.au/businessnews/article.aspx?id=594335 |title=Sky News: Aussie dollar hits new highs |publisher=Sky News |date=28 March 2011 |access-date=19 April 2011 |archive-url=https://web.archive.org/web/20110728022926/http://www.skynews.com.au/businessnews/article.aspx?id=594335 |archive-date=28 July 2011 |url-status=dead}}

Since the end of 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 2024, it has traded at a range of $0.63 to $0.68.

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){{cite web |url = http://www.businessinsider.com/the-most-traded-currencies-in-2016-2016-12 |title = Here are the most traded currencies in 2016 |website = Business Insider |first = Jeff |last = Desjardins |date = 29 December 2016 |access-date = 30 June 2017 |archive-date = 7 July 2017 |archive-url = https://web.archive.org/web/20170707135916/http://www.businessinsider.com/the-most-traded-currencies-in-2016-2016-12 |url-status = live }} behind the United States dollar, the euro, the Japanese yen and the 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.

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.{{cite web |url = http://www.westpac.com.au/docs/pdf/aw/economics-research/MarketInsights.pdf |publisher=Westpac |title=Westpac Market Insights March 2011 |page=4 |access-date=8 April 2011 |archive-url = https://web.archive.org/web/20110307030949/https://www.westpac.com.au/docs/pdf/aw/economics-research/MarketInsights.pdf |archive-date=7 March 2011 |url-status=dead}} 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 and one of the most traded currencies in the world.{{cite news |url=https://www.smh.com.au/business/aussie-now-fifth-mosttraded-currency-20100901-14nma.html |title=Aussie now fifth most traded currency |newspaper=The Sydney Morning Herald |date=2 September 2010 |access-date=19 April 2011 |last=Yeates |first=Clancy |archive-date=5 April 2011 |archive-url=https://web.archive.org/web/20110405073729/http://www.smh.com.au/business/aussie-now-fifth-mosttraded-currency-20100901-14nma.html |url-status=live }} Other factors in its popularity include a relative lack of central bank intervention, and general stability of the Australian economy and government.{{cite web |url=http://www.safehaven.com/article/4608/analyzing-the-australian-dollar-up-down-and-under |title=Analyzing the Dollar – Up, Down, and Under |first=Gary |last=Dorsch |date=14 February 2006 |website=SafeHaven.com |access-date=8 April 2011 |archive-date=31 October 2010 |archive-url=https://web.archive.org/web/20101031201958/http://www.safehaven.com/article/4608/analyzing-the-australian-dollar-up-down-and-under |url-status=live }} In January 2011 at the World Economic Forum in Davos, Switzerland, Alexey Ulyukaev announced that the Central Bank of Russia would begin keeping Australian dollar reserves.{{cite news |url=http://en.ria.ru/business/20120126/170960429.html |title=Russia to Keep Dollar Reserves From February |date=26 January 2012 |publisher=RIA Novosti |access-date=27 January 2012 |location=Davos, Switzerland |archive-date=12 June 2012 |archive-url=https://web.archive.org/web/20120612135834/http://en.ria.ru/business/20120126/170960429.html |url-status=live }}

{{Most traded currencies}}

{{Clear}}

{{Exchange Rate|AUD|NZD}}

Australian notes are legal tender throughout Australia by virtue of section 36(1) of the Reserve Bank Act 1959 without an amount limit.{{Cite Legislation AU|Cth|act|rba1959130|Reserve Bank Act 1959|36}} Section 16 of the Currency Act 1965 similarly provides that Australian coins intended for general circulation are also legal tender, but only for the following amounts:{{Cite Legislation AU|Cth|act|ca1965120|Currency Act 1965|16}}

• 1c and 2c coins (withdrawn from circulation from February 1992, but still legal tender): for payments not exceeding 20c
• 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{{Cite web|url=https://www.legislation.gov.au/Details/C2016C01090|title=Currency Act 1965|date=21 October 2016 |access-date=24 July 2018|archive-date=9 May 2019|archive-url=https://web.archive.org/web/20190509005541/https://www.legislation.gov.au/Details/C2016C01090|url-status=live}}
• Coins of other denominations: no lower limit

However, being legal tender does not necessarily oblige businesses to accept cash. The Reserve Bank states that businesses can set commercial terms for a transaction that requires the use of a non-cash payment.{{cite web |title=RBA Banknotes: Legal Tender |url=http://banknotes.rba.gov.au/legal/legal-tender/ |url-status=live |archive-url=https://web.archive.org/web/20141213015111/http://banknotes.rba.gov.au/legal/legal-tender/ |archive-date=13 December 2014 |website=rba.gov.au}} However, a business may technically be required to accept cash if they are taken to court, but this is usually not a viable option for consumers.{{Cite news |last=Watterson |first=Larrisa |date=2024-02-08 |title=Legal tender rights for Australians in the headlines again following Bob Katter's cafe cash snub |url=https://www.abc.net.au/news/2024-02-08/right-to-pay-with-cash-or-card-legal-tender-bob-katter/103441698 |access-date= |work=ABC News (Australia) |language=en-AU}}

Australian notes and coins are also legal tender in the independent sovereign states of Kiribati, Nauru, and Tuvalu. Nauru never had its own currency. Tuvalu and Kiribati additionally had their respective Tuvaluan and Kiribati dollars at par with the Australian dollar. They are legal tender in their respective countries but not in Australia. However, both countries no longer produce coinage since the 1990s and have never produced their own banknotes. As a result, the Australian dollar is the dominant currency in both countries.

Tuvalu also issues non-circulating commemorative bullion coins produced by the Perth Mint.{{cite web|url=https://www.perthmint.com/news/collector/coin-collecting/explaining-tuvalus-role-in-modern-coins/|title=Explaining Tuvalu's role in modern coins|publisher=Perth Mint|date=27 August 2019|access-date=11 February 2023}}{{cite web|url=https://www.abc.net.au/news/2020-05-31/tuvalu-pacific-collectable-coins-perth-mint/12290590|title=Why the tiny Pacific nation of Tuvalu wants a bigger share of the collectable coin market|publisher=ABC News|date=31 May 2020|access-date=11 February 2023}}

{{Portal|Asia|Australia|Money|Numismatics|Oceania}}

• Banking in Australia
• Brass razoo
• Coins of Australia
• Economy of Australia
• Note Printing Australia
• Section 51 (xii) of the Constitution of Australia

{{Notelist}}

{{Reflist}}

{{Refbegin}}

• {{Numis cite SCWC |date=1991}}
• {{Numis cite SCWPM |date=1994}}

{{Refend}}

{{Commons category multi | Coins of Australia | Banknotes of Australia }}

• [https://web.archive.org/web/20120423103106/http://naa12.naa.gov.au/scripts/Imagine.asp?B=869021&I=1&SE=1 Sound recording of 1966 Decimal Currency radio advertisement] held at the National Archives of Australia

• [https://banknotes.rba.gov.au/australias-banknotes/ Reserve Bank of Australia: Current Banknotes]
• The [https://www.perthmint.com/ Perth Mint] is Australia's precious metals mint, making non-circulating/collector coins in silver, gold, and platinum.
• [https://www.noteprinting.com/ Note Printing Australia] is the printer of Australia's notes, and also inventor of the abovementioned polymer banknotes, and world exporter of this technology.

• The [https://www.moneytracker.com.au/ Money Tracker] site allows users to track Australian banknotes as they circulate around Australia.
• [https://colnect.com/en/banknotes/list/country/13-Australia Images of historic and modern Australian bank notes]
• [https://www.rba.gov.au/statistics/frequency/exchange-rates.html Reserve Bank of Australia – daily value of AUD against 13 currencies, special drawing right and trade weighted index]
• [https://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)]
• [https://www.bis-ans-ende-der-welt.net/Australien-B-En.htm The banknotes of Australia] {{in lang|en|de}}

{{N-start}}

{{N-before|currency=Australian pound|reason=decimalisation|ratio=2 dollars = 1 pound}}

{{N-currency|location=Australia, Christmas Island, Cocos Islands, Norfolk Island, Nauru, Kiribati, Tuvalu|start=14 February 1966}}

{{N-after}}

{{N-before|currency=New Guinean pound|reason=decimalisation|ratio=2 dollars = 1 pound}}

{{N-currency|location=Papua New Guinea|start=14 February 1966|end=1975}}

{{N-after|currency=Papua New Guinean kina|reason=currency independence|ratio=at par}}

{{N-before|currency=Australian pound|reason=decimalisation|ratio=2 dollars = 1 pound}}

{{N-currency|location=Solomon Islands|start=14 February 1966|end=1977}}

{{N-after|currency=Solomon Islands dollar|reason=currency independence|ratio=at par}}

{{End}}

{{Australian currency}}

{{Dollar}}

{{Currencies of Oceania}}

{{Currencies of Asia}}

{{Australia topics}}

{{Economy of Australia}}

{{Authority control}}

Category:1966 establishments in Australia

Category:Articles containing video clips

Category:Circulating currencies

Category:Currencies introduced in 1966

Category:Currencies of Australia

Category:Dollar

Dollar, Australian

Category:Foreign trade of Australia

Category:Currencies of Oceania

Category:Currencies of Asia