What is Australian Money Called and How It Works

Australian money is made up of three main denominations: the Australian dollar ($), which is divided into 100 cents.

The Australian dollar is the official currency of Australia and is used throughout the country.

You can exchange your money for Australian dollars at airports, banks, and currency exchange offices.

The Australian dollar is available in various forms, including coins and banknotes.

Australian money has a rich history, and it's interesting to note that the first coins to be used as currency were imported from Britain, the Netherlands, India, Portugal, and Spain during the 18th century.

The first coinage was introduced in 1813, featuring a 15pence and 5shilling coin known as the "Holey dollar".

Before the introduction of coins, the pound sterling was used as currency, and later, the Australian pound was introduced in 1909.

Australian currency is made up of coins and banknotes, which are issued by the Reserve Bank of Australia. The Royal Australian Mint in Canberra produces the coins, while Note Printing Australia produces the banknotes.

The coins come in six denominations: 5, 10, 20, 50 cents, $1, and $2. Smaller units, including 1-cent and 2-cent coins, are no longer in circulation, having been discontinued in 1991.

The Australian dollar coins bear a portrait of Queen Elizabeth II on the obverse, which has changed several times since the dollar was introduced in 1966. The current portrait is used on all coins, but was updated in 2023 to feature King Charles III.

Here are the different types of Australian coins:

The Australian coins are a fascinating aspect of the country's currency. The Royal Australian Mint in Canberra has been producing coins since 1965 and has produced over 14 billion circulating coins to date.

The coins come in various denominations, including 1, 2, 5, 10, 20, and 50 cents, as well as $1 and $2 coins. The 1 and 2 cent coins were discontinued in 1991 and withdrawn from circulation in 1992.

All Australian dollar coins feature a portrait of Queen Elizabeth II on the obverse, which has changed several times to match the Queen's age. The first change was made in 1985, with a new crown and pose, and the most recent change was made in 1999, showing a more age-appropriate portrait of Elizabeth.

The 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.

Here's a list of the current Australian coins, including their value, technical parameters, and description:

The Australian 50-cent coin is one of the largest coins used in the world today, with a mass of 15.55 grams and a diameter of 31.51 millimeters.

Holey dollars were a unique type of currency used in the early days of the New South Wales colony. They were created by punching a hole in the middle of Spanish dollars, also known as pieces of eight, which Governor Lachlan Macquarie bought in 1813.

The resulting coins, known as holey dollars and dumps, became a consistent monetary currency within the colony. They were counter-stamped and had no value overseas, which helped keep them within the colony.

Holey dollars were used as a form of currency in the colony from 1813 until 1829. During this time, they were used alongside other foreign coins, such as Dutch guilders and Portuguese johannas.

The Australian pound was created in 1910, nine years after Federation. It was the country's own currency, but its coins were minted by branches of Britain's Royal Mint in Sydney, Melbourne and Perth.

The Australian pound was a significant development in the country's currency history.

Its introduction marked a shift towards greater independence from British currency systems.

The Australian dollar is a unique currency that's easy to identify, thanks to its colorful banknotes and distinct coinage. You can spot it on your favorite currency converter with the letters AUD.

In 1966, the Australian dollar replaced the pound, with a conversion rate of A$2 = A£1. This change was a significant step towards decimalisation, which was first proposed by the Decimal Currency Committee in 1960. The committee's report led to the establishment of a Decimal Currency Board to oversee the transition process.

The Australian dollar is not only used in Australia but also in several external territories, including Christmas Island, Cocos (Keeling) Islands, and Norfolk Island. It's also the official currency in Kiribati, Nauru, and Tuvalu.

In February 1959, treasurer Harold Holt appointed a Decimal Currency Committee to examine the merits of decimalisation.

The committee reported in August 1960 in favour of decimalisation and proposed a new currency modelled on South Africa's rand, which was worth 10 shillings or 1⁄2 pound.

The Menzies government announced its support for decimalisation in July 1961, but delayed the process to give further consideration to the implementation process.

A public consultation process was held, resulting in over 1,000 names suggested for the new currency, which was then narrowed down to seven names.

The new currency was initially going to be called the "royal", but this met with widespread public disapproval, and it was later renamed the "dollar".

The pound was replaced by the dollar on 14 February 1966, with a conversion rate of A$2 = A£1.

A pre-decimal amount of nine pounds, sixteen shillings and sixpence (£9 16s 6d) became $19.65 in terms of dollars and cents.

The Australian dollar is also official currency in Kiribati, Nauru, and Tuvalu.

The Australian dollar is a unique currency that stands out from other dollar currencies with its colorful banknotes and distinct coinage.

It uses the same symbol as the U.S. dollar, but you can easily identify it with the letters AUD on your favorite currency converter.

The Australian dollar is a significant player in the global economy. It was the sixth-most-traded currency in 2022.

This ranking puts it behind the euro, the United States dollar, the Japanese yen, the British pound, and the Chinese yuan. These currencies dominate the foreign exchange market.

The Australian dollar accounted for 6% of foreign exchange transactions, a notable share in the global market.

The Australian dollar has a fascinating history that spans thousands of years. Indigenous currency revolved around a barter system, with tools, shells, and other items traded for food and supplies.

The first European currencies to be introduced in Australia were the Spanish dollar and the British pound, brought by settlers in 1788. With wars going on in Europe, rum became a de-facto currency due to the lack of available money.

The Australian dollar replaced the pound in 1966, with a conversion rate of A$2 = A£1. The new currency was divided into 100 cents, just like the US dollar and New Zealand dollar.

The Australian dollar is now the official currency in Australia, and it's also accepted in several external territories, including Christmas Island, Cocos (Keeling) Islands, and Norfolk Island.

The first people to settle on Australia arrived between 40,000 and 70,000 years ago.

The first authenticated European landing on Australia was in 1606, by Dutch navigator Willem Janszoon and his crew. However, there are arguments as to whether this is accurate.

The British settlers founded Port Jackson in 1788 and divided the land into several penal colonies. These colonies were later united in 1901, into the Commonwealth of Australia.

The country received full sovereignty in 1931.

In the 18th century, Australia imported coins from various countries, including Britain, the Netherlands, India, Portugal, and Spain.

The territory's first coinage was introduced in 1813, including a 15pence and 5shilling coin, known as the "Holey dollar".

The pound sterling was later introduced, followed by the Australian pound in 1909.

Prior to 1966, the Australian currency consisted of pounds, shillings, and pence, similar to the British pound sterling.

The Australian dollar replaced the pound in 1966, with 1 Australian dollar divided into 100 cents.

Commemorative coins have been a part of Australian currency since 1970.

The first commemorative coin was minted that year, with a denomination of 50 cents, to honor James Cook's exploration along the east coast of the Australian continent.

Commemorative coins have been issued for various occasions, including Queen Elizabeth II's Silver Jubilee in 1977.

The first commemorative 1 dollar coin was issued in 1986, marking the International Year of Peace.

Commemorative coins have been produced in various denominations over the years, with the 20 cent, 50 cent, and 1 dollar coins being the most commonly used.

In fact, commemorative coins with denominations ranging from 1 to 1,000,000 dollars have been issued.

All Australian commemorative coins are legal tender within the country, but they're hardly ever found in circulation.

Commemorative coins have become a unique way to commemorate significant events and people in Australian history.

The Australian dollar's value is influenced by several key factors, including its high interest rates and relatively free foreign exchange market from government intervention. This makes it a popular choice among currency traders.

One of the main drivers of the Australian dollar's value is commodity prices. Economists agree that commodity prices are the dominant driver of the Australian dollar, meaning changes in exchange rates occur in ways opposite to many other currencies.

The Australian dollar's dependence on commodity exports means it varies significantly during the business cycle. This is in contrast to other reserve currencies, which tend to be stronger during market slumps as traders move value from falling stocks into cash.

The Central Bank of Russia, for example, began keeping Australian dollar reserves in January 2011, recognizing its stability and potential for growth.

Here's a breakdown of the top 10 most traded currencies in the world, ranked by their daily volume in April 2022:

The Australian dollar's relatively small proportion of the global foreign exchange market turnover is due to its relatively small economy compared to other major economies.

The Australian Dollar has undergone significant changes throughout its history, and one crucial aspect is its status as legal tender. The Australian government declared the Australian dollar as the country's official currency in 1966.

In 1966, the Australian government also introduced the Reserve Bank of Australia's (RBA) authority to manage the currency and regulate the banking system. The RBA is responsible for maintaining the stability of the financial system and the value of the Australian dollar.

As of 1966, the Australian dollar was pegged to the US dollar at a fixed exchange rate of $1.12 AUD to $1 USD. This pegging was maintained until 1983, when it was floated.

The Australian government's decision to make the Australian dollar legal tender was a significant step in the country's economic development. It marked a shift away from the British pound and towards a more independent monetary policy.

Australia's economic growth was hindered by its complex currency system, with the Australian pound being divided into 20 shillings of 12 pence each, making financial transactions a chore.

The arithmetic of the pound was a significant obstacle to economic productivity, and research showed that decimalisation would save the Australian economy more than £11 million a year.

The cost of conversion was estimated to be £30 million, but the benefits of decimalisation far outweighed the costs.

The Australian government finally recognised the economic importance of decimalisation in the late 1950s, with the Menzies government leading the charge.

Decimalisation was a simple practical consideration that would make financial transactions easier and more efficient.

By adopting a decimalised currency, Australia could keep pace with its trading partners and the majority of the world.

The only argument against decimalisation was the symbolic connection to Britain, but by the 1950s, Australians were feeling less tied to the mother country.

The Decimal Currency Committee was established in 1959 to examine the merits of decimalisation, and its recommendations led to the introduction of the Currency Act 1963.

The government nominated 14 February 1966 as Changeover Day, marking the beginning of a two-year transition period during which both currencies would be legal tender.

The change to decimal currency was a significant step forward for Australia's economy, and it paved the way for future economic growth and development.

Australia introduced the world's first polymer banknotes in 1988, which are cleaner and last longer than traditional paper banknotes.

These innovative notes featured advanced security features, including fluorescent ink, microprint, and other attributes to prevent fraud and counterfeiting.

The introduction of polymer banknotes marked a significant milestone in Australian currency history, showcasing the country's commitment to security and durability.

The AUD, Australia's currency, is easily identifiable by the letters on your favorite currency converter, setting it apart from other dollar currencies.

The Royal Australian Mint in Canberra was a game-changer for decimalisation, opening a year ahead of schedule to produce and stockpile about one billion coins in good time.

The federal government had been printing notes since 1913, but to produce enough coins for decimalisation, a new mint was necessary.

The Royal Australian Mint received help from the Royal Mint in London and its branches in Australia to get the job done.

The new currency's coins would depict Australian wildlife, while the notes would reflect our history and contribution to the wider world.

The decimal denominations of the new currency matched their pound/shilling/pence counterparts, making the transition easier for users.

For example, the $1 bill replaced the 10-shilling note, giving users a familiar reference point.