Australian dollar is represented by the sign of $ and its code is AUD. AUD is the currency of the Commonwealth of Australia and it includes the Christmas Island, Norfolk Island and the independent Pacific States. It can abbreviated as AU$ or A$ and it is different from the dollar denominated currencies. The Australian dollar is one of the world’s most important, famous and widely used currency because it is used all over the continent of Australia. According to the statistics of 2011, at comes at number fifth at most traded currency in the world. It stands for 7.6% of the world’s share in the foreign exchange markets in the world. It comes after the dollar, euro, the yen and the pound sterling
COINS AND THE BANK NOTES:-
In the Australian dollar currency, there are five coins which are 1, 2, 5, 10, 20 and 50. Some of them were made of silver but then withdrawn and now they are just made out of the cheap metal. Some coins were discontinued and some of them are still remaining in the currency. Current Australian 5-, 10-and 20-penny coins are indistinguishable in size to the previous Australian, New Zealand, and British sixpence, shilling, and two shilling (florin) coins. With a mass of 15.55 g and a width of 31.51 mm, the Australian 50-penny coin is one of the biggest coins utilized as a part of the world today. Available for use, the old New Zealand 5-, 10-and 20-penny coins were frequently confused for Australian coins of a similar esteem, attributable to their indistinguishable size and shape. Still, some perplexity happens with the bigger section coins in the two nations; Australia’s $1 coin is comparative in size to New Zealand’s $2 coin, and the New Zealand $1 coin is comparative in size to Australia’s $2 coin.
Talking about the bank notes, the Australia was the first country to make plastic banknotes. Paper cash gets ruined and needs ceaseless substitution. So to spare cash Australia designed plastic cash. Australian dollar notes now last 4x longer than their paper partners. Besides they are harder to fake. They additionally withstand machine washing which is famous for wrecking money around the world. This implies our polymer development is the eventual fate of printed cash. Incidentally, however the notes are made of plastic, they are equipped for withstanding the warmth of an iron.
FOREIGN EXCHANGE RATES:-
Firstly and before the 1983, the Australia used to have a fixed exchange rate. This is just because of the historical ties of the Australian dollar with the British pounds and which is at the rate of 0.5 GBP first. But when in 1946-71, when Australia maintained a peg under the Bretton Woods System, a fixed.
exchange was maintained between the Australian dollar and the US dollar and gold. But when this system was broken, due to fluctuating rates of dollar and the weight index, then in 1983, Australia broke its law of fixed rates.
ECONOMY OF AUSTRALIA:-
The economy of Australia is one of the largest mixed economies all around the world and it is just because of the worth of the Australian dollar. It has a total GDP of 1.62 million AUD. The total worth of Australia is 6.4 trillion dollar. Australian currency and its economy accounts for the 1.7% of the total world’s economy. The Australian currency is dominated by the service sector accounting for 68% of the GDP. The economic growth of the currency is highly dependent upon the agricultural and the mining sector which accounts for the 12% of GDP. The Australian currency is one of the world’s toughest, resilient and the sustainable currency that even after the international economic crisis and so on, this currency is sustainable and has not lost its worth. The currency faced its first crisis in 2007-12 which was the global financial currency and then he Rudd’s Government crisis from 2010-12 but the currency is still sustainable.