The Australian Dollar is the currency of Australia. Our currency rankings show that the most popular Australian Dollar exchange rate is the AUD to USD rate. The currency code for Dollars is AUD, and the currency symbol is $. Below, you'll find Australian Dollar rates and a currency converter.
Importance of the Australian Dollar
The central bank in Australia is called the Reserve Bank of Australia. As the 5th most traded currency globally, the Australian dollar is also referred to as buck, dough, or the Aussie. The Australian Dollar is known as a commodity currency due to its substantial raw material exports. As a result, the AUD is affected by China and other Asian import markets. Due to its relatively high interest rates, the Australian Dollar is often used in carrying trades with the Japanese Yen. A carry trade is a strategy in which a currency with a low-interest rate is sold to buy a currency with a higher interest rate.
Early Currency in Australia
When New South Wales was first established in 1788, the English Pound was the official currency, although Spanish Dollars were regularly used. In 1813, to try to discourage the illegal use of Spanish Dollars, the centers of the coins were cut out; they became known as 'holey dollars,' and the cores were called 'dumps'; this was Australia's first form of coinage.
From the Pound Sterling to the Australian Dollar
In 1825, the government imposed the Sterling standard, and British coins began to be minted in Australia. These silver and bronze coins continued to be used until 1910 when the Australian Pound's new national currency was introduced. The Australian Pound was fixed in value to the Pound Sterling and, as a result, used a gold standard. Three years later, the first series of Australian notes were issued. In February of 1966, the Australian Dollar (AUD) was introduced under a decimalized system; dollars and cents replacing the pounds, shillings, and pence. In 1988, banknotes were converted to polymer, a technology originally developed in Australia to help prevent counterfeiting.