Australian Dollar - History

History

With pounds, shillings and pence to be replaced by decimal currency on 14 February 1966, many names for the new currency were suggested. In 1965, the Prime Minister, Sir Robert Menzies, a monarchist, wished to name the currency the royal. Other proposed names included more exotic suggestions such as the austral, the oz, the boomer, the roo, the kanga, the emu, the digger, the kwid, the dinkum, the ming (Menzies' nickname). Owing to Menzies' influence, the name royal was settled on, and trial designs were prepared and printed by the Reserve Bank of Australia. The choice of name for the currency proved unpopular, and it was later dropped in favour of the dollar.

The Australian pound, introduced in 1910 and officially distinct in value from the pound sterling since devaluation in 1931, was replaced by the dollar on 14 February 1966. The rate of conversion for the new decimal currency was two dollars per Australian pound, or ten Australian shillings per dollar. The exchange rate was pegged to the pound sterling at a rate of $1 = 8 shillings ($2.50 = UK £1). In 1967, Australia effectively left the Sterling Area when the pound sterling was devalued against the U.S. dollar and the Australian dollar did not follow. It maintained its peg to the U.S. dollar at the rate of A$1 = US$1.12.

On the 27th, September, 2012 The Reserve Bank of Australia released a Media-Release on their Website, along with a Media Conference, stating that they had ordered work on a project to upgrade the current Bank Notes. They stated this was necessary due to the addition of many new security features, but declined to state any. They estimate it will take several years for the new Bank Notes to be issued.

From 25 May 2013, the Australian Dollar will be alongside the New Zealand dollar as the currency of Nauru.