Australian Dollar (AUD)

Basic Concepts of the Australian Dollar

The Australian Dollar is the official currency of the Commonwealth of Australia, issued and managed by the Reserve Bank of Australia, with the currency code AUD and the symbol $ or A$ to distinguish it from other US Dollar currencies. As the fifth most traded currency in the world, the AUD is known for its high liquidity and strong correlation with commodity prices.

Countries and Territories of Use

The Australian dollar is legal tender in Australia and its overseas territories (e.g. Norfolk Island, Christmas Island, etc.). It is also used as the actual currency of circulation in Pacific Island countries such as Kiribati and Nauru, and is widely accepted in areas such as East Timor.

Units and Denominations

The Australian dollar uses the decimal system, with 1 Australian dollar equaling 100 Australian cents. Currently circulating banknotes are in denominations of AUD 5, 10, 20, 50, and 100, and coins include AUD 1, AUD 2, and AUD 5, 10, 20, and 50 cents. All banknotes are made of polymer with advanced security features.

Historical Background

The Australian dollar was officially replaced by the Australian pound on February 14, 1966, with the introduction of the decimal system, and the introduction of polymer banknotes in 1998 was a first in terms of currency security. The exchange rate system has gone through a fixed exchange rate, trade-weighted index pegs, to 1983 to achieve a completely free floating, and has become an important wind vane reflecting the economic dynamics of the Asia-Pacific region.