Australian dollar

The Australian dollar (AUD) is the official currency of Australia and its external territories. It is also the official currency for three sovereign Pacific Island states: Kiribati, Nauru, and Tuvalu.

This currency holds a significant place in the global economy. It is the sixth most-traded currency in the foreign exchange market. It is also the sixth most-held reserve currency globally. The dollar is subdivided into 100 units called cents. The $ symbol is placed before the amount. While some versions use two strokes, a single-stroke symbol is also acceptable.

Under the Australian Constitution, the federal Parliament has the power to legislate regarding currency and legal tender. Section 51(xii) grants this authority to the Commonwealth. Crucially, Section 115 prevents individual states from coining their own money. This ensures a unified national system.

Most Australian coins are produced at the Royal Australian Mint. This facility is located in the capital city, Canberra. Since opening in 1965, the Mint has produced over 14 billion coins. It has the capacity to produce more than two million coins every single day.

Before the modern system, Australia used a non-decimal currency called the Australian pound. Before the colonies federated in 1901, each colony had its own separate currency. These systems closely resembled the British system and were usually exchangeable one-to-one. In 1910, the Australian pound was introduced at par with the British pound sterling. This pound was divided into 240 pence, rather than a base of 100. Although committees recommended decimalization as early as 1902 and 1937, these suggestions were not acted upon for many decades.

The transition to a decimal system began in earnest in 1959. Treasurer Harold Holt appointed a Decimal Currency Committee, led by Walter D. Scott. The committee recommended decimalization in 1960. They suggested a model similar to South Africa's replacement of the pound with the rand. There was a brief period of public debate regarding the name of the new currency. The government initially suggested the name "royal," but widespread public disapproval led them to choose "dollar" instead.

On 14 February 1966, the Australian dollar officially replaced the pound. The conversion rate was set at two dollars for every one Australian pound.

Australian coinage has evolved through different materials and denominations. In 1966, the first decimal coins included 1 and 2 cent bronze coins. The 5 and 10 cent coins were made of cupronickel, a mix of 75% copper and 25% nickel. The 50-cent coin was originally made of 80% silver. However, silver coins were no longer minted after March 1968 because the silver value exceeded the coin's face value.

In 1984, the one-dollar coin was introduced, followed by the two-dollar coin in 1988. These are made of aluminium bronze. Because of their color, people often refer to them as "gold coins."

Banknotes in Australia have seen major technological shifts. The first paper series began in 1966. However, the discovery of substantial counterfeiting of $10 notes prompted a search for better technology.

In 1988, Australia became the first country to produce polymer banknotes. These notes are made of polypropylene polymer. This material makes the notes cleaner, more durable, and easier to recycle than paper. The first polymer note was a $10 note issued to commemorate the bicentenary of European settlement.

Modern Australian banknotes feature many significant historical figures. The $100 note depicts the soprano Dame Nellie Melba and General Sir John Monash.

The $50 note features the inventor David Unaipon and Edith Cowan, Australia's first female parliamentarian.

The $20 note includes Reverend John Flynn and Mary Reibey.

These designs connect the currency to the diverse history and culture of the nation. Today, the circulation of Australian currency includes approximately A$4.4 billion in coins and A$101.3 billion in notes.