1, Australian dollar characteristics
As of 2017, the current circulation of Australian plastic banknotes, after nearly 30 years of research and development, is to replace paper with polyester materials, wear-resistant, not easy to break, not afraid of rubbing, long use cycle and strong feel. It has good anti-counterfeiting characteristics.
The main features of Australian banknotes can be summarized briefly as follows:
Currency name: Australian dollar (AUSTRALIAN DOLLAR)
Currency symbol: AUD
Coin carry: 1 Australian dollar = 100 (CENTS)
Note denomination: 5 yuan, 10 yuan, 20 yuan, 50 yuan, 100 yuan
Coin denomination: 5, 10, 20, 50
Issuer: (RESERVE BANK OF AUSTRALIA), Reserve Bank of Australia
2. Factors affecting the Australian dolla
The Australian dollar, also known as the "commodity currency", is closely linked to the prices of commodities such as gold, copper, nickel, coal and wool, which account for nearly 2 / 3 of Australia's total exports. As a result, the Australian dollar's movements are usually strongly influenced by these commodity price trends. The Australian dollar is often backed up in a bullish economy at a time when commodity prices are soaring. For example, the Australian dollar rose when gold prices rose in 2002, as did the Australian dollar in the summer of 2002, when metal prices retreated, and both rose again in the fourth quarter of 2004.
On the other hand, Australia's close ties to the Japanese economy, which absorbs 20 percent of Australia's exports, and the euro-zone economy explain why the Australian dollar follows the euro and yen. For example, the anti-correlation between the Australian dollar and the dollar against the yen in foreign exchange markets is easier to identify. The Aussie exchange rate against the US dollar is the same as that of the euro and sterling against the US dollar, indicating how many US dollars a Australian dollar corresponds to.
3, Australian dollar related agencies
- Reserve Bank of Australia: the Reserve Bank of Australia was granted the status of the Central Bank of Australia under the Reserve Bank Act of 1959. The main task of the Reserve Bank is to maintain the stability of the Australian dollar exchange rate and to maintain full employment. In 1993, the Reserve Bank of Australia was given the authority to operate independently, and the objectives of the Reserve Bank's work were set. The annual growth target for mid-term inflation is set at 2-3%. The reason for medium-term rather than short-term inflation targets is to encourage healthy and sustainable economic growth.
- Reserve Bank Board: responsible for formulating monetary policy. In addition to January each year, the committee meets on the first Tuesday of each month. The results of interest rate decisions are generally announced on the second day of the meeting. The committee consists of nine members, including the President of the Reserve Bank, the Vice-President, the Secretary of the Treasury and six other external members appointed by the Chancellor of the Exchequer. The term of office of the president and vice-president is up to seven years and may be re-elected. The term of office of six external members is up to five years.
- Although the Reserve Bank of Australia gained power to operate independently and set inflation targets in 1993, the President and Vice-President of the Reserve Bank need to be appointed by the Chancellor of the Exchequer.
4, Australian dollar interest rate policy
- The Reserve Bank's most important monetary policy tool is overnight money market interest rates, or Cash rate targets. The cash rate is the overnight loan rate between the two financial institutions.
