A Best Exchange Rates UK Foreign Currency Guide: A History of the Australian dollar

January 6th, 2012

A Best Exchange Rates UK Foreign Currency Guide: A History of the Australian dollar.

In the 1800s, the first official currency that was circulated around Australia was the Holey Dollar and the Dump. These coins were created by Governor Lachlan Macquarie in order to resolve the coinage scarcity in the Australian colony of New South Wales. He purchased Spanish silver dollars and punched out the centres of them which were then modelled into two coins. The inner coin, also known as the Dump was valued at 15 pence and the outer coin, named the Holey Dollar, was valued at 5 shillings. This not only doubled the amount of coins in circulation but increased their total worth. By 1813, both designs had Australian currency references stamped on to their surfaces. Later in 1852, the Government Assay Office issued gold pound coins and sovereigns that were minted by the Sydney and Melbourne mints.

In 1901 the Commonwealth of Australia was established when the British combined the colonies of Tasmania, South Australia, Victoria, Queensland and New South Wales with Western Australia. As a result of the Commonwealth being formed the currency adopted was British – gold, silver and bronze coins as well as notes that were issued from the Australian banks.

The Australian Notes Act of 1910 passed authority to issue Australian notes onto the Treasury. A few years later, Prime Minister Andrew Fisher of the Labour Government prohibited the circulation of State notes and introduced a national currency called the Australian pound. This was the starting point for the first ever Australian Pound notes. The value of the Australian Pound was fixed to the British Pound Sterling which, as a result of fluctuations in the UK foreign currency, caused repercussions in the Australian economy.

In 1966, Australia converted from the UK currency to decimal currency. The notes used in Australia illustrated the emerging diversity of the Australian society. This didn’t last too long as within 30 years Australia issued its first series of polymer currency notes, which were a worldwide first.
The Australian dollar is the seventh most used foreign currency in the foreign exchange market. Many people making transactions within Australia look to find the best exchange rates for Australian dollars.

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