Have you ever wondered how the Australian Dollar came about? The roots of its origins are tied up with Australia’s own history of politics. It used to be that currencies were denominated as pounds, pence, and Shillings. When the decimal system was introduced, it initiated active discussion on the currency of Australia. There were many names that were proposed for the official currency of Australia. Some were very interesting and unique such as the Kanga, The Oz, the Austral, The emu, The Digger and The Roo. Former Prime Minister Sir Robert Menzies came up with his own creation, the Royal.
What The Currency Was Called Before The Dollar
Prior to 1813, there were two types of currencies used in Australia. These were the English Pound and the Spanish Dollar. There were some growing concerns that these two currencies would be produced and used illegally. Thus, they were discontinued and were referred to as dumps. By 1825, the Sterling and the corresponding British currencies found their way to Australia. As the currencies continued to circulated in 1910, it gave way to the official launching of the Australian Pound.
Today’s Money In Australia
Every country has a Central Bank. The job of the Central Bank is to oversee all currency activity in the country. In Australia, it is the Reserve Bank of Australia. Australia’s currency is one of the most popularly traded currencies in the market at number five. It is sometimes called the Buck or the Aussie. Some traders view it as a commodity currency. This is because it is used by exporters of raw materials.
The Australian Dollar’s value is influenced by movements of the Chinese and Asian markets. It carries a high interest rate in comparison with other currencies which is why the Australian Dollar is included in the carry trade whereby a lower or favourable interest rate is exchanged for a currency which carries a comparatively higher rate of interest. No surprise on the symbol of the Australian Dollar which is the popular “$” sign. If you’re looking for the Australian Dollar on the exchange rate board, just look for “AUD”.
What denominations come with the Australian Dollar? The currency is denominated as follows: $0.50, $5, $10, and $20. The designs of the currencies highlight symbols or images that refer to Australia’s history.
Where To Exchange Foreign Cash
Do you want to exchange your foreign cash for Australian Dollars? All you have to do is buy them at authorized places such as foreign currency exchange centres, banks, hotels and airports. You can even transact with an ATM or Automated Teller Machine. Keep in mind that services may be limited for some locations. Additional charges may be applied if you use a foreign account when making a withdrawal. If you want to do an EFT or Electronic Fund Transfer, ask first from the authorized centre if the facility is available.
Banks That Operate In The Country
There is a reason why Australia’s city of Sydney is regarded as the Financial Hub of the Pacific. There is an abundance of major international and local banks that do business in Australia. Among these are Commonwealth Bank of Australia, Australia New Zealand Bank, the Westpac Banking Corporation, and the National Bank of Australia.
The Australian Post alone lends banking services to an estimated 70 financial companies. The variety of banks doing business in Australia is so vast you can use debit and credit card to transact. Many of these financial institutions also offer remittance services.
Before traveling to Australia, talk to your bank. Find out if their bank has an active branch in the country. Get all the pertinent details such as the locations, phone numbers, and contact persons.
Banks manage all of the payroll accounts as well as the benefits that are mandated by the Australian government. Credit cards of almost all types are accepted. If you want to be sure, carry either a Mastercard or a VISA card. Do you have a JCB card? You might run into some problems because not many places accept JCB card for transactions. Again, this is a good reason why you should do research before flying Down Under. Find out the types of payments accepted. If for some reason, your options become limited, bring along some cold, hard cash. Just bring enough to cover important purchases and contingencies.
Generally, there is no limit to the amount of Australian Dollar that you want to bring with you during your trip. The same goes when you leave Australia for home. However, it is required that you have the total amount of currency declared at authorized locations in order to get the key details on banks and other financial services.
Who Can You Approach If You Have Questions About Money?
If you have some questions about money, exchange rates, and modes of payment, feel free to contact the Australian Bankers Association. If you want to know how much Australian Dollars you can exchange given the amount of foreign currency you have, simply use an online currency converter. To be sure that you are getting your money’s worth, read up on currency movements and trends from publications online and in newsletters.