Political sketch
Formerly the colonies of New South Wales, Queensland, South Australia, Tasmania, Victoria, and Western Australia. Independent from the United Kingdom on 1 January 1901.
Australia's first inhabitants, the aborigines, came from Southeast Asia 40,000 to 60,000 years ago. The Dutch landed in Australia in 1616 and continued their explorations until 1644. The British arrived in 1688, but made no large-scale expedition until James Cook's historic voyage of 1770. The voyage resulted in the United Kingdom claiming Australia establishing a colony at Sydney Cove, New South Wales. The United Kingdom used Australia as a place of exile for British convicts nearly from the start of its settlement, continuing into the 1800s. European diseases reduced the number of aborigines, which is estimated to have been 300,000 to more than 1 million in 1788. Wars and takings of lands by European settlers drove others off their ancestral lands. The island of Tasmania, the next settlement, received settlers from Sydney as early as 1803, and colonists arrived in Western Australia in 1827. By 1859 all of Australia's six states had colonial settlements.
Copper was discovered in 1842 and large amounts of gold in 1851. Australia developed a prosperous economy based on
mining and sheep ranching. A concern for national defense and intercolonial free trade, and a desire to control immigration
led to a federation movement in the late 1800s. Popular referenda were held in 1898 and 1899, and the colonies became
independent from the United Kingdom as the federal Commonwealth of Australia on 1 January 1901. Canberra was
designated the national capital in 1908. Australia fought alongside the United Kingdom in the First and Second World
Wars. Since the Second World War, Australia has developed a more distinctive cultural identity less influenced by the
United Kingdom and has played a larger role than before in Asian and Pacific affairs. It remains, as it has been since the
1800s, a rich, democratic country, sparsely populated for its size. The economy is diversified; Australia remains a large
exporter of commodities.
Wars since 1500
Black War, 1804-1830 (Europeans versus Tasmanian aborigines); First Irish Convict Rebellion (Castle Hill Rising), 1804;
Second Irish Convict Rebellion, 1806; Australian Rum Rebellion, 1808; First World War, 1914-1918 (United Kingdom,
British Empire, France, United States, Japan, and their allies against Germany and its allies ); Second World War in the
Pacific, 1942-1945 (Japan against United Kingdom, United States, China, Australia, New Zealand, Netherlands, and allies).
Convertibility
The sterling area:
On 2 August 1914, soon after the First World War began, the United Kingdom issued a proclamation imposing a one-month moratorium of payment for bills of exchange accepted before 4 August; an act of 3 August 1914 gave legislative sanction to the proclamation. The moratorium was subsequently extended for a month and ended on 4 November 1914. Legally the pound sterling remained convertible into gold and could be exported, but the risk to shipping from German submarines made the cost of shipment prohibitive, so the United Kingdom was in effect off the gold standard. The British government refused to include private shipments of gold in its war-risk insurance scheme. After the war, the export of gold was prohibited from 1 April 1919 under regulations that were given statutory form in 1920. On 28 April 1925 the government announced that the act would not be renewed when it expired on 31 December 1925. On 13 May 1925 the United Kingdom resumed the gold standard.
The United Kingdom abandoned the gold standard on 21 September 1931. The currencies of British colonies were almost all linked to the pound sterling through currency boards; being on a sterling-exchange standard rather than a gold-exchange standard, they followed the pound sterling off gold. Over the next few years, some former British colonies (Australia, New Zealand, South Africa) and other countries that had important trade links with the United Kingdom switched from gold to the pound sterling as their official or actual anchor. The result was termed the sterling area. The United Kingdom imposed exchange controls on 4 September 1939, the day after entering the Second World War. Most countries that were not current or former British colonies soon left the sterling area. Among the remaining countries, both current- and capital-account transactions were free of restrictions within the sterling area, but were restricted in dealings with outside countries. After the Second World War, the United Kingdom returned to the gold standard under the Bretton Woods system. It removed exchange controls on 15 August 1947, but reimposed them on 20 August 1947 after suffering a large loss of foreign reserves. Sterling had a dual exchange rate from 1961 until the United Kingdom abolished exchange controls. The sterling area remained in existence because sterling was not fully convertible. It began to crumble after the United Kingdom again abandoned the gold standard on 23 June 1972. By January 1973 the sterling area had shrunk to the British Isles and a few small British colonies; even Hong Kong had abandoned sterling as its anchor currency. The United Kingdom abolished exchange controls on 24 October 1979, ending the sterling area.
Australia alone:
Australia imposed an embargo on shipments of gold from 14 July 1915, after the First World War had begun, through 24 April 1925 (Australia, proclamation of 14 July 1915). Australia imposed exchange controls on 28 August 1939, shortly before as the Second World War began. In January 1976 Australians became free to buy and sell gold in Australia; previously, they had been required to sell it to the central bank within one month. Australia removed most exchange controls on 12 December 1983, in conjunction with a managed float of the Australian dollar (Australia, Treasurer's announcement of 9 December 1983). On 1 July 1990 Australia abolished regulations pertaining to the export of Australian notes and coins.
Australia left the sterling area on 23 June 1972.
The monetary area of Australia included Papua and New Guinea from the First World War until Papua New Guinea left it
on 1 January 1976.
Other
Defaults on or restructurings of debt to the private sector (mainly from Purcell and Kaufman 1993 and Standard & Poor's 2004): None.
Banking crises (data since 1970s mainly from Caprio and Klingebiel 1999 and Frydl 1999): 1843 (the Bank of Australia, Port Phillip Bank, and Sydney Bank failed during an economic slump); in 1893 there was a major crisis in which many banks failed or merged; 1989-1992, nonsystemic problems with fiscal costs of about 2 percent of GDP.
Frankel and Rose (1996) list of currency crashes: Country not listed.
References
Primary sources:
--Laws and decrees:
Australia. Gazette. 1901-present. Commonwealth of Australia Gazette (1901-1973; also titled Commonwealth Gazette); Australian Government Gazette (1973-1977); Commonwealth of Australia Gazette (1977-present). Canberra: Commonwealth Government Printer (1901-1979); Australian Government Publishing Service (1979-present).
Great Britain (United Kingdom). Gazette. 1665-present. Oxford Gazette (1996-1666); London Gazette (1666-present). Oxford (1665-1666); London (1666-present): His/Her Majesty's Stationery Office from 1903. Online at <http://www.gazettes.online.co.uk>; as of September 2005, gazettes since 1900 are available.
Historical Records of Australia. See Watson, Frederick.
New South Wales. Gazette. 1832-present. The New South Wales Government Gazette (1832-1900); Government Gazette of the State of New South Wales (1900-present). Sydney: Government Printer. Recent issues are available at <http://www.ag.gov.au/portal/govgazonline.nsf> (viewed 14 April 2005).
Northern Territory. Gazette. 1873-1927. Northern Territory Times and Gazette (1873-1927); Government Gazette (1927-1941); Government Gazette, Northern Territory of Australia (1942-1978); Northern Territory, Government Gazette (divided into series denoted C, G, M, PS, R, and S, 1979-present). Palmerston, Northern Territory: Northern Territory Times and Gazette (1873-1941); Darwin: Government Printer (1942-present). Not online, but see the Northern Territory Legislation History database, <http://www.dcm.nt.gov.au/dcm/parliamentary_counsel/legislation_history.shtml> (viewed 14 April 2005).
Queensland. Gazette. 1859-present. Queensland Government Gazette. Brisbane: T. P. Pugh's Printing Office. Recent issues are available at <http://www.goprint.qld.gov.au/web/web/index.asp?Pg=31> (viewed 14 April 2005).
South Australia. Gazette. 1836-present. South Australian Gazette and Colonial Register (1836-1839); South Australian Government Gazette (1839-present). Adelaide: Robert Thomas and Company (1836-1839); Government Printer? (1839-present). Recent issues are available at <http://www.governmentgazette.sa.gov.au/> (viewed 14 April 2005).
Tasmania. Gazette. 1816-present. Tasmania: Government Gazette (1816-1822); Hobart Town Gazette (1822-1880); Hobart Gazette (1881-1906);Tasmanian Government Gazette (1907-present). Hobart: Government Printer. Recent issues are available through <http://www.publicinfo.tas.gov.au/> (viewed 14 April 2005).
Victoria. Gazette. 1843-present. Port Phillip Government Gazette (1843-1851); Victoria Government Gazette (1851-1987); Victoria Government Gazette: General (one of three sections, the others being Periodical and Special; 1987-present). Melbourne: Recent issues are available at <http://www.gazette.vic.gov.au/> (viewed 14 April 2005).
Western Australia. Gazette. 1836-present. Western Australia Government Gazette (1836-1877); Government Gazette of Western Australia (1888-1989); Western Australia Government Gazette (1990-present). Perth: Government Printer. Recent issues are available at <http://www.slp.wa.gov.au/gazette/gazette.nsf> (viewed 14 April 2005).
Watson, Frederick, editor. 1914-1925. Historical Records of Australia, 1st series, 33 v. Sydney: Library Committee of the Commonwealth Parliament. (Later series also exist.)
--Publications of monetary authorities:
Commonwealth Bank of Australia. Annual report. 1912-1960. Aggregate Balance Sheet of the Commonwealth Bank of Australia (1912-1927);Balance Sheet of the Commonwealth Bank of Australia; and, Balance Sheet of the Commonwealth Savings Bank of Australia (1928-1941); Balance Sheet and Director's Report / Commonwealth Bank of Australia and Commonwealth Savings Bank of Australia (1942-1944); Report and Balance Sheets (1945-1959); Report and Financial Statements (1960). Sydney: Commonwealth Bank of Australia. (This report includes information about the Notes Issue Board during its existence from 1920-1924).
Commonwealth Bank of Australia. Bulletin. 1937-1959. Statistical Bulletin. Sydney: Commonwealth Bank of Australia.
Reserve Bank of Australia. Annual report. 1959/1960-present. Report and Financial Statements (1959/1960-1999); Annual Report (2000-present). Sydney: Reserve Bank of Australia.
Reserve Bank of Australia. Bulletin. 1960-present. Bulletin (1960-1981); Statistical Bulletin (1981-present). Sydney: Reserve Bank of Australia.
--Web site of the current monetary authority (viewed January 2005):
<http://www.rba.gov.au>
--Other publications or Web sites:
Australia. Official yearbook. 1901/1907-present. Official Yearbook of the Commonwealth of Australia (1901/1907-1972); Official Yearbook of Australia (1973-1977); Year Book, Australia (1978-present). Canberra: Commonwealth Bureau of Census and Statistics (1901/1907-1977); Australian Bureau of Statistics (1978-present). (Contains information on Australia and on Australian territories and mandates.)
Butlin (1968 [1953]) contains a list of primary sources.
IMF. International Monetary Fund. 1946-1971 (irregular). Schedule of Par Values. Washington: International Monetary Fund.
Main secondary sources:
Bell, Stephen. 2004. Australia's Money Mandarins: The Reserve Bank and the Politics of Money. Cambridge: Cambridge University Press.
Blainey, Geoffrey, and Geoffrey Hutton. 1983. Gold and Paper, 1858-1982: A History of the National Bank of Australasia Ltd. South Melbourne, Australia: Macmillan.
Butlin, S[ydney] J[ames]. 1961. Australia and New Zealand Bank: The Bank of Australasia and the Union Bank of Australia Limited, 1828-1951.London and Croydon, Victoria, Australia: Longmans, Green and Company.
Butlin, S[ydney] J[ames]. 1968 [1953]. Foundations of the Australian Monetary System, 1788-1851. Sydney: University of Sydney Press. Original edition Carlton, Victoria: Melbourne University Press. (The reprint edition is a photographic reproduction. An online edition, <http://setis.library.usyd.edu.au/ozlit/pdf/sup0003.pdf>, has text not keyed to the original page numbers.)
Butlin, S[ydney] J[ames]. 1986. The Australian Monetary System 1851 to 1914. Sydney?: Ambassador Press for J. F. Butlin.
Butlin, S[ydney] J[ames], A[lan] R[oss] Hall, and R[onald] C[harles] White. 1971. Australian Banking and Monetary Statistics 1817-1945.Occasional Paper No. 4B. Sydney: Reserve Bank of Australia.
Chalmers, [Sir] Robert. 1893. A History of Currency in the British Colonies. London: Eyre and Spottiswoode for Her Majesty's Stationery Office.
Coleman, William. 1999. "A Brief History of the Australian Notes Issue Board, 1920-1924." Cato Journal, v. 19, no. 1, Spring/Summer: 161-70. <http://www.cato.org/pubs/journal/cj19n1/cj19n1-11.pdf>, viewed 4 April 2005.
Commonwealth Bank of Australia. 1947. The Commonwealth Bank of Australia in the Second World War: An Outline of the Bank's Principal Wartime Activities from the Outbreak of War in September, 1939, to the Termination of Hostilities in September, 1945. Sydney: John Sands.
Gollan, Robin. 1968. The Commonwealth Bank of Australia: Origins and Early History. Canberra: Australian National University Press.
Giblin, L[yndhurst] F[alkiner]. 1951. Growth of a Central Bank: Development of the Commonwealth Bank of Australia, 1924-1945. Melbourne: Melbourne University Press.
Gill, Thomas. 1912. A Brief Sketch of the Coinage and Paper Currency of South Australia. Adelaide: Vordon and Sons Limited. (Reprinted from the Proceedings of the Royal Geographical Society of Australia: South Australian Branch.)
Holder, R[eginald] F[rank]. 1970. Bank of New South Wales: A History, 2 v. Sydney: Angus and Robertson. (The pages of the volumes are numbered consecutively.)
IMF ARER. 1950-present. International Monetary Fund. Annual Report on Exchange Restrictions (1950-1978), Annual Report on Exchange Arrangements and Exchange Restrictions (1979-1988), Exchange Arrangements and Exchange Restrictions: Annual Report (1989-present). Washington: International Monetary Fund. (Contains information on IMF member countries and some of their dependencies.)
Jauncey, Leslie C[yril]. 1933. Australia's Government Bank. London: Cranley and Day. (Concerns the Commonwealth Bank of Australia.)
Merrett, David. 1985. ANZ Bank. Sydney: Allen and Unwin. (I have not seen this.)
RR. Reinhart, Carmen M., and Kenneth S. Rogoff. 2004. "The Modern History of Exchange Rate Arrangements: A Reinterpretation." Quarterly Journal of Economics, v. 99, no. 1, February: 1-48. Earlier drafts and underlying data are available on Reinhart's Web site, <http://www.puaf.umd.edu/faculty/papers/reinhart/reinhart.htm>.
Schedvin, C[arl] B[oris]. 1992. In Reserve: Central Banking in Australia, 1945-75. Saint Leonards, New South Wales, Australia : Allen and Unwin.
Vort-Ronald, Michael P. 1979. Australian Banknotes. Whyalla Norrie, Australia: Michael P. Vort-Ronald.
White, R[onald] C[harles]. 1973. Australian Banking and Monetary Statistics 1945-1970. Occasional Paper No. 4B. Sydney: Reserve Bank of Australia.
Wood, R. J. 1990. The Commercial Bank of Australia Limited: History of an Australian Institution, 1866-1981. North Melbourne: Hargreen Publishing Company.
Monetary authorities: New South Wales (to 1900)
| Dates | Type | Name | Source | Remarks |
| September? 1788
-7 April 1817 |
government issue | government of New South Wales (headquarters Sydney, New South Wales) | Butlin (1968 [1953]: 15, 58, 85) | Government commissary "store receipts" circulated as money, along with private promissory notes. |
| 8 April 1817
-June 1828 |
free banking alongside government issue | multiple note-issuing banks alongside government of New South Wales (headquarters Sydney, New South Wales) | "charter" of Bank of New South Wales, 22 March 1817 (granted by the local governor without the required British government approval); articles of association of Waterloo Company; other bank articles of association (deeds of settlement) and charters; see Butlin (1968 [1953]: 113, 159, 193) | Governor Lachlan Macquarie had proposed a government loan bank in 1810 but the British Colonial Office had rejected it. The first bank, the privately owned Bank of New South Wales (headquarters Sydney, New South Wales), which opened in Sydney, was the belated fruit of Macquarie's efforts to establish a bank. The "charter" granted by the local governor gave the bank limited liability, but it was illegal because it had not been approved by the British government. The British government declared the "charter" void. Eventually, the bank reorganized itself as a joint-stock (unlimited liability) company with a deed of settlement in October 1827. It reformed with limited liability in 1850. The second bank was the Waterloo Company (headquarters Sydney, New South Wales), which opened in Sydney in 1822 and issued its first notes on 1 June 1822. The Savings Bank of New South Wales (headquarters Sydney, New South Wales) opened in Sydney in 1819. New South Wales, act of 12 July 1826 (cited in Chalmers 1893: 248) prohibited notes of less than £1. |
| June 1828
-25 May 1893 |
free banking | multiple note-issuing banks | Butlin (1968 [1953]: 203) | The government withdrew almost all its notes in February 1827, Butlin implies, and destroyed the notes and the plates for them in June 1828. Bank notes largely displaced private promissory notes after a time. A mint opened in Sydney on 14 May 1855. In Australia as a whole, not just New South Wales, there were more than 50 note-issuing banks during the period of free banking. In 1865, the government imposed a note tax of 2% a year (Holder 1970, v. 1: 165). |
| 26 May 1893
-1898? |
free banking alongside government issue | multiple note-issuing banks alongside government of New South Wales (headquarters Sydney, New South Wales) | New South Wales, Bank Issue Act of 1893; proclamation of 15 May 1893; Current Account Depositors Act, 56 Victoria No. 17, 1893; Bank Notes Act of 1893, April 1894; cited in Vort-Ronald (1979: 19) or Holder (1970, v. 1: 468, 471) | The government issued notes during a financial crisis. The Bank Issue Act empowered the government to declare the notes of any bank to be legal tender, and the proclamation of 15 May 1893 made it applicable immediately. The Current Account Depositors Act empowered the government to issue government notes to depositors of banks that had suspended payments. Notes could be issued for up to 50% of the value of an account, with the whole value of the account acting as security. The notes were payable in gold after 5 years. The Bank Notes Act of 1893, actually passed in April 1894, repealed the Bank Issue Act of 1893 and regulated future bank-issued notes. The term of the act was limited to 18 months. |
| 1898?
-31 December 1900 |
free banking | multiple note-issuing banks | Sources I consulted are unclear about when this period started. | Government note issue ceased. The federation of Australia came into existence on 1 January 1901; for the subsequent history of the Australian states see the table for Australia. |
Monetary authorities: Victoria (to 1900)
| Dates | Type | Name | Source | Remarks |
| February 1838
-31 December 1900 |
free banking | multiple note-issuing banks | Derwent Bank, articles of association (in Tasmania), December 1828, cited in Butlin, below; other bank articles of association (deeds of settlement) and charters; Butlin (1968 [1953: 219, 238, 297-8) | What is now Victoria was the Port Phillip District of New South Wales until created a separate colony on 1 July 1851. The first bank was the Derwent Bank (headquarters Hobart, Tasmania), which established an agency in Melbourne. In September 1838 the Union Bank of Australia (headquarters London, England) took over the agency and converted it to a branch. A mint opened in Melbourne on 12 June 1872. The second competing bank was the Bank of Australasia (headquarters London, England), in Melbourne, on 28 August 1838. Victoria enacted a tax of 2% on bank notes in 1876 (Holder 1970, v. 1: 165). It proclaimed a bank holiday from 1-5 May 1893, during a financial crisis; not all banks closed during that time (Holder 1970, v. 1: 464) The federation of Australia came into existence on 1 January 1901; for the subsequent history of the Australian states see the table for Australia. |
Monetary authorities: Tasmania (Van Dieman's Land) (to 1900)
| Dates | Type | Name | Source | Remarks |
| 15 March 1824
-31 December 1900 |
free banking | multiple note-issuing banks | Bank of Van Dieman's land, Van Dieman's land charter, December? 1823, reprinted in Historical Records of Australia, series 3, v. 4: 532-47; other bank charters and articles of association (deeds of settlement); Butlin 1968 [1953]: 194, 217) | The first bank was the Bank of Van Dieman's Land (headquarters Hobart, Van Dieman's Land [from 1853 officially Tasmania]), in Hobart. The second Bank was the Tasmanian Bank (headquarters Hobart, Van Dieman's Land [now Tasmania]), in Hobart, sometime from 31 July-4 August 1826. Its legal basis was not clear from the sources I have seen. Private promissory notes circulated widely until notes below £1 were prohibited in 1826 (Tasmania, Act No. 3, 7 George IV, 1826, cited in Chalmers 1893: 269). Tasmania apparently imposed a bank note tax in the late 1800s (Holder 1870, v. 1: 166). The federation of Australia came into existence on 1 January 1901; for the subsequent history of the Australian states see the table for Australia. |
Monetary authorities: South Australia (including present-day Northern Territory) (to 1900)
| Dates | Type | Name | Source | Remarks |
| April 1837
-31 December 1900 |
free banking | multiple note-issuing banks | Bank of South Australia, United Kingdom prospectus, dated 1 June 1836 but actually issued later in the year, reprinted in Gill (1912: 11); Bank of Australasia, United Kingdom charter of 21 May 1835; other bank articles of association (deeds of settlement) and charters; Butlin (1968 [1953]: 268, 298) | The South Australian Company issued store notes of 6 pence to £1 in Kingscote dated 1 June 1836 (Gill 1912: Plates IV-VIII). The first bank was the Bank of South Australia (headquarters Adelaide, South Australia), in Adelaide in April 1837. It was founded in connection with the South Australian Company, and its notes replaced the company's store receipts as the predominant note currency. The second bank was the Bank of Australasia (headquarters London, England), in Adelaide, on 14 January 1839. A rudimentary mint to stamp gold was established at Adelaide on 10 February 1852 (South Australia, Bullion Act, No. 1, 28 January 1852, reprinted in Gill (1912: no pages, end of volume). It ceased business on 17 February 1853 (South Australia, governor's proclamation of 3 February 1853, cited in Chalmers 1893: 275). During this period, South Australia included what is now the Northern Territory. South Australia apparently imposed a bank note tax in the late 1800s (Holder 1870, v. 1: 166). The federation of Australia came into existence on 1 January 1901; for the |
Monetary authorities: Queensland (to 1900)
| Dates | Type | Name | Source | Remarks |
| 1850
-November 1866 |
free banking | multiple note-issuing banks | New South Wales, 9 George IV no. 3, approved 1829 (allowing the Bank of New South Wales to sue or be sued); act of 5 September 1839 (allowing the Union Bank of Australia, whose United Kingdom act of association was dated 7 July? 1837, to sue or be sued) other bank articles of association (deeds of settlement) and charters; Butlin (1968 [1953]: 375) | Queensland was separated from New South Wales in 1859. Its first banks began before then. The first bank was the Bank of New South Wales (headquarters Sydney, New South Wales), in Brisbane, in 1851. The second bank was the Union Bank of Australia (headquarters London, England), in Brisbane, in June 1853. The federation of Australia came into existence on 1 January 1901; for the subsequent history of the Australian states see the table for Australia. |
| November 1866
-1869? |
government issue alongside free banking | government of Queensland (headquarters Brisbane, Queensland) alongside multiple note-issuing banks | Queensland, 30 Victoria Nos. 10 and 11, 1866, cited in Chalmers (1893: 280); Vort-Ronald (1979: 20) | The government of Queensland made a temporary issue of notes, dated 1 November 1866, during a period of financial stringency. The period of issuance was limited to four years. |
| 1869?
-1 June 1893 |
free banking | multiple note-issuing banks | Queensland, Treasury Bills Act of 1869, cited in Chalmers (1893: 280) Vort-Ronald (1979: 20) | Government issue ceased, possibly before this date. The Treasury Bills Act did not reauthorize government notes. Western Australia apparently imposed a bank note tax in the late 1800s (Holder 1870, v. 1: 166). |
| 2 June 1893
-31 December 1900 |
government issue | government of Queensland (headquarters Brisbane, Queensland) | Queensland, Treasury Notes Act of 1893; Treasury Notes Advance Act of 1893; both cited in Vort-Ronald (1979: 19) | The government of Queensland issued notes during the financial crisis of 1893. The Treasury Notes Advance Act in effect drove bank-issued notes out of circulation in Queensland by requiring payment in full of all notes in circulation by banks. The Queensland Treasury was permitted to advance Treasury-issued notes when necessary for that purpose. Treasury-issued notes were dated 2 June 1893, which is why I date the period as beginning then.. |
Monetary authorities: Western Australia (to 1900)
| Dates | Type | Name | Source | Remarks |
| 1830
-1832 |
government issue | government of Western Australia (headquarters Perth, Western Australia) | Western Australia, governor's proclamation of 1830, implied in Chalmers (1893: 282); Butlin (1968 [1953]: 381) | The government issued promissory notes because of a shortage of coins. |
| 1832
-January 1834 |
coins only (but see Remarks) | various coins, especially pound sterling and silver dollars | Butlin (1968 [1953]: 382) | The government notes were recalled because the clerk responsible for writing them issued forgeries. Private promissory notes issued by individuals were widely used. |
| January 1834
-November 1836 |
government issue | government of Western Australia (headquarters Perth, Western Australia) | Western Australia, governor's proclamation of 10 January 1834, cited in Butlin (1968 [1953]: 384) | Another issue of government promissory notes, again issued because of a shortage of coins. The local colonial government withdrew the issue upon the command of the British government. |
| November 1836
-31 May 1837 |
coins only (but see Remarks) | various coins, especially pound sterling and silver dollars | Butlin (1968 [1953]: 385) | Private promissory notes issued by individuals were widely used. |
| 1 June 1837
-31 December 1900 |
free banking | multiple note-issuing banks | Bank of Western Australia, articles of association, 1837; Bank of Australasia, British royal charter of 21 May 1835; Western Australia, 8 William IV, No. 1, 10 July 1837, cited in Chalmers (1893: 284); Western Australian Bank, articles of association, early 1841; other bank charters and articles of association (deeds of settlement); Butlin (1968 [1953]: 391-7) | The first bank was the Bank of Western Australia (headquarters Perth, Western Australia), in Perth. The 1837 Western Australian act made it legal for any copartnership to carry on banking business and issue notes in the colony. The Bank of Australasia (headquarters London, England) bought the Bank of Western Australia in 1841, opening a branch in Perth on 3 May 1841. The second competing bank was the Western Australian Bank (headquarters Perth, Western Australia), in Perth, on 23 June 1841, established by dissident shareholders of the Bank of Western Australia. The federation of Australia came into existence on 1 January 1901; for the subsequent history of the Australian states see the table for Australia. |
Monetary authorities: Australia (since 1901)
| Dates | Type | Name | Source | Remarks |
| 1 January 1901
-31 October 1910 |
free banking alongside government issue | multiple note-issuing banks alongside government of Australia (headquarters Sydney, Australia) | United Kingdom, Commonwealth of Australia Constitution Act, 9 July 1900 | Australia's federal government came into existence on 1 January 1901. The free banking systems that existed in Australia's constituent states continued. Section 108 of the federal constitution continued laws already in force in the states. |
| 1 November 1910
-13 December 1920 |
government issue | Australian Treasury (headquarters Sydney, Australia) | Australia, Australian Notes Act, No. 11, 16 September 1910; Bank Notes Tax Act, No. 14, 10 October 1910; proclamation of 31 October 1910 bringing the Australian Notes Act into force; the acts are cited in Australia official yearbook 1916: 773 | A provision of the Australian Notes Act forbade state governments from issuing notes after a proclaimed date, decided by a later proclamation to be 1 May 1911. The Bank Notes Tax Act imposed a prohibitively high tax rate of 10% on bank-issued notes in circulation, in addition to a previously existing tax of 2%. The aim of this legislation was to gain seigniorage for the federal government. Initially, the law required the government to hold a gold reserve of 33-1/3% against for the first Australian £7 million of notes and a gold reserve of 100% thereafter, but the Australian Notes Act of 1911 repealed the provision for 100% coverage, effective 1913. The federal government used a variety old notes that were overstamped until issuing a uniform new design of notes on 5 May 1913 (Vort-Ronald 1979: 112). |
| 14 December 1920
-9 October 1924 |
monetary institute | Notes Issue Board (headquarters Sydney, Australia) | Australia, Commonwealth Bank Act , No. 43, 14 December 1920 | The Notes Issue Board was an autonomous department of the government-owned Commonwealth Bank of Australia (headquarters Sydney, Australia), which had opened on 15 July 1912 (Australia, Commonwealth Bank Act 1911). |
| 10 October 1924
-13 January 1960 |
central bank (with commercial banking functions) | Commonwealth Bank of Australia (headquarters Sydney, Australia) | Australia, Commonwealth Bank Act, No. 15 of 1924 | Eliminated the autonomy of the Notes Issue Board because the board had antagonized key political interests. Australia joined the IMF on 5 August 1947. The government-owned Commonwealth Bank of Australia had more formal central banking responsibilities from 1945 (Commonwealth Bank Act 1945; Banking Act 1945). |
| 14 January 1960
-present (2005) |
central bank | Reserve Bank of Australia (headquarters Sydney, Australia) | Australia, Reserve Bank Act, No. 4, 23 April 1959 | Split the Commonwealth Bank into a pure commercial bank, which retained the old name, and a central banking arm, which became the Reserve Bank of Australia. |
Exchange rate arrangements: New South Wales (to 1909)
| Dates | Official arrangement | Source | Unofficial arrangement, if different | Remarks |
| September? 1788
-18 November 1800 |
pegged; local £1 = UK£1 | no legislation | also used various foreign coins, especially Spanish silver dollars; see Remarks on "currency" | The colony was founded in 1788. In practice, government and private promissory notes (IOUs) circulated more widely than coins, which were generally in short supply because of Australia's remoteness. The government sold bills of exchange on London. The pound sterling and the Spanish silver dollar coexisted as units of account, though sterling was used in official accounts. Local promissory notes were issued in "currency," which was nominally denominated in pounds sterling but actually circulated at rates of exchange typically in the range of £1 / 4 shillings - £1 / 10 shillings (£1.20-150) "currency" = UK£1 or = £1 in local government bills of exchange on London. |
| 19 November 1800
-4 February 1823 |
pegged; local £1 = UK£1; also Spanish silver $4 = UK£1 | New South Wales, General Order (governor's proclamation) of 19 November 1800, cited in Chalmers (1893: 243) | See Remarks on "currency" | The colony's first currency proclamation established ratings of Spanish dollar and other coins. In practice, government and private promissory notes (IOUs) circulated more widely than coins, which were generally in short supply because of Australia's remoteness. To solve this problem, the government coined "holey dollars," so called because they had holes in the center (New South Wales, governor's proclamation of 1 July 1813). Sterling and the dollar coexisted as units of account, though sterling was used in official accounts. The Bank of New South Wales issued checks denominated in dollars as early as April 1822 and circulated notes denominated in dollars by the start of 1823 at latest. The use of "currency," mentioned in the previous period, continued. The governor attempted without success to put the colony on a pure sterling basis (a step in this direction was New South Wales, governor's proclamation of 23 November 1816, published 7 December 1816). |
| 5 February 1823
-31 May 1825 |
pegged; local £1 = UK£1; also Spanish $5 = UK£1 | New South Wales, General Order of 5 February 1823, reprinted in Chalmers (1893: 247) | Another governor tried to put the colony on the dollar standard. This step followed measures of 1822 to discourage the use of Spanish silver dollars. | |
| 1 June 1825
-31 December 1825 |
pegged; local £1 = UK£1; also Spanish $1 = UK 4 shillings 4 pence (Spanish $60 = UK£13) | United Kingdom, Order in Council and Proclamation of 23 March 1825; New South Wales, government notice printed 5 May 1825, cited in Butlin (1968 [1953]: 156) | New South Wales, proclamation published 31 October 1825, set the exchange rate for paying customs duties at Spanish silver Spanish $1 = UK 4 shillings 4 pence (Spanish $60 = UK£13). Before the British order reached New South Wales, its contents were public knowledge, and the government took this as a preliminary measures to prepare for the order (Butlin 1968 [1953]: 163). | |
| 1 January 1826
-June 1828 |
pegged; local £1 = UK£1 (preferentially; see Remarks); also Spanish $1 = UK 4 shillings 4 pence (Spanish $60 = UK£13) | New South Wales, General Order of 31 December 1825; Currency Act, 7 George IV, No. 3, 12 July 1826; both cited in Butlin (1968 [1953]: 164, 166) | The General Order decreed that government accounts would use only the pound as the unit of account from 1 January 1826. The Currency Act promoted the use of the pound among private users, such as for payment of taxes. By 1826 the pound seems to have become the predominant unit of account in the private sector also. | |
| June 1828
-22 November 1829 |
fixed; local £1 = UK£1 (preferentially); also Spanish $1 = UK 4 shillings 4 pence (Spanish $60 = UK£13) | Butlin (1968 [1953]: 203) | The exchange rate became fixed with the withdrawal of government notes from circulation. | |
| 23 November 1829
-1854 |
fixed; local £1 = UK£1; also Spanish silver $1 = UK 4 shillings 2 pence (Spanish $25 = UK£4) or less in practice | Resolution of traders and shopkeepers of Sydney, 23 November 1829, cited in Butlin (1968 [1953]: 171) | The traders and shopkeepers of Sydney resolved to accept Spanish silver dollars at a more depreciated rate than the official rate, corresponding more nearly to the value of dollars as metal; by several months later the dollar was conventionally received at Spanish silver $5 = UK£1 (Spanish silver $1 = UK 4 shillings). | |
| 1854
-25 May 1893 |
fixed; local £1 = UK£1 = 7.32238g gold | New South Wales, Act No. 39 of 1854; Act No. 3 of 1855; both cited in Chalmers (1893: 254) | Established gold British coins and their local equivalents minted in Sydney as the only unlimited legal tender. Demonetized the Spanish dollar and other foreign coins previously accepted. | |
| 26 May 1893
-1898? |
pegged; local £1 = UK£1 = 7.32238g gold | New South Wales, Bank Issue Act of 1893; proclamation of 15 May 1893; Current Account Depositors Act, 56 Victoria No. 17, 1893; Bank Notes Act of 1893, April 1894; cited in Vort-Ronald (1979: 19) or Holder (1970, v. 1: 468, 471) | The government issued notes during a financial crisis. The exchange rate therefore became pegged again. | |
| 1898?
-3 September 1909 |
fixed; local £1 = UK£1 = 7.32238g gold | Sources I consulted are unclear about when this period started | Government note issue ceased, so the exchange rate became fixed. The federation of Australia came into existence on 1 January 1901. Following the end of this period, Australia created a national currency. |
Exchange rate arrangements: Victoria (to 1909)
| Dates | Official arrangement | Source | Unofficial arrangement, if different | Remarks |
| 1 July 1851
-17 October 1853 |
fixed; local £1 = UK£1; also Spanish silver $1 = UK 4 shillings 2 pence (Spanish $25 = UK£4) or less in practice | Resolution of traders and shopkeepers of Sydney, 23 November 1829, cited in Butlin (1968 [1953]: 171) | Victoria became a colony separate from New South Wales on 1 July 1851. Arrrangements already in force in New South Wales prevailed. | |
| 18 October 1853
-3 September 1909 |
fixed; local £1 = UK£1 = 7.32238g gold | United Kingdom, Order in Council and Proclamation of 16 October 1852; Victoria, notice of 18 October 1853 publishing the proclamation, cited in Chalmers (1893: 263) | Victoria adopted the British monetary standard. Gold was plentiful because of local gold discoveries of 1851. |
Exchange rate arrangements: Tasmania (Van Dieman's Land) (to 1909)
| Dates | Official arrangement | Source | Unofficial arrangement, if different | Remarks |
| 1803
-4 February 1823 |
fixed; local £1 = UK£1 (but see Remarks on "currency"); also Spanish silver $4 = UK£1 | New South Wales, General Order (governor's proclamation) of 19 November 1800, cited in Chalmers (1893: 243); Butlin (1968 [1953]: 150, 152) | The first European settlers arrived in Tasmania in 1803. Administratively, Tasmania was part of New South Wales until created as the colony of Van Dieman's Land in 1825. Legislation in force in New South Wales therefore applied in Tasmania. In this period, silver dollars predominated over British coins. | |
| 5 February 1823
-31 May 1825 |
fixed; local £1 = UK£1; also Spanish $5 = UK£1 | New South Wales, General Order of 5 February 1823, reprinted in Chalmers (1893: 247) | A governor of New South Wales tried to put the colony on the dollar standard. This step followed measures of 1822 to discourage the use of Spanish silver dollars. | |
| 1 June 1825
-31 March 1826 |
fixed; local £1 = UK£1; also Spanish $1 = UK 4 shillings 4 pence (Spanish $60 = UK£13) | United Kingdom, Order in Council and Proclamation of 23 March 1825; New South Wales, government notice printed 5 May 1825, cited in Butlin (1968 [1953]: 156) | Before the British order reached New South Wales, its contents were public knowledge, and the governent took this as a preliminary measures to prepare for the order (Butlin 1968 [1953]: 163). New South Wales, proclamation published 31 October 1825, set the exchange rate for paying customs duties at Spanish silver Spanish $1 = UK 4 shillings 4 pence (Spanish $60 = UK£13). Tasmania became a separate colony from New South Wales in December 1825. | |
| 1 April 1826
-late 1842 |
fixed; local (Tasmanian) £1 = UK£1 (preferentially; see Remarks); also Spanish $1 = UK 4 shillings 4 pence (Spanish $60 = UK£13) | Tasmania, government order of 8 March 1826, cited in Butlin (1968 [1953: 175); Sterling Money Act, 7 George IV No. 3, 22 September 1826, cited in Butlin (1968 [1953]: 164, 177) | The government order decreed that government accounts would use only the pound as the unit of account from 1 April 1826. The private sector also switched to the pound as its unit of account in 1826. | |
| late 1842
-3 September 1909 |
fixed; local £1 = UK£1 | Tasmania, 6 Victoria cap. 7, 14 September 1842, cited in Chalmers (1893: 270) | Repealed the legal tender status of the Spanish dollar and made the pound sterling the only legal tender. By 1849 it was reported that British coins were the only ones in circulation. Tasmania limited the legal tender of silver coins on 19 September 1853 (United Kingdom, Order in Council and Proclamation of 16 October 1852; Tasmania, notice of 19 September 1853 publishing the proclamation, cited in Chalmers 1893: 270). Coins minted in Sydney and Melbourne were later declared legal tender also. Following the end of this period, Australia created a national currency. |
Exchange rate arrangements: South Australia (to 1909)
| Dates | Official arrangement | Source | Unofficial arrangement, if different | Remarks |
| 1834
-6 June 1871 |
fixed; local £1 = UK£1; also Spanish $1 = UK 4 shillings 4 pence (Spanish $60 = UK£13) | United Kingdom, Order in Council and Proclamation of 23 March 1825 | The British government created South Australia as a legal entity in 1834. The first European settlers arrived in 1835. Queensland, Bullion Act, No. 1 of 1852 (cited in Chalmers 1893: 274) allowed the government to coin gold ingots. The act was a successful attempt to increase the local monetary base by attracting gold from the gold mining boom then underway in Australia. The government offered 71shillings (£3.55) per ounce of gold, less a mint charge of 1%. Queensland, governor's proclamation of 3 February 1853 (cited in Chalmers 1893: 275), closed the mint as of 17 February 1853. | |
| 7 June 1871
-3 September 1909 |
fixed; local £1 = UK£1 | United Kingdom, Order in Council and Proclamation of 14 January 1871; South Australia, notice of 7 June 1871 publishing the proclamation, cited in Chalmers (1893: 276) | British and Sydney mint coins were made legal tender, with gold the only unlimited legal tender. Following the end of this period, Australia created a national currency. |
Exchange rate arrangements: Queensland (to 1909)
| Dates | Official arrangement | Source | Unofficial arrangement, if different | Remarks |
| 1859
-November 1866 |
fixed; local £1 = UK£1 = 7.32238g gold | New South Wales, Currency Act, No. 3 of 1855, cited in Chalmers (1893: 279) | What is now Queensland was part of New South Wales until created as an independent colony in 1859. Legislation in force in New South Wales therefore applied in what is now Queensland. After Queensland was created, the New South Wales act of 1855 continued to be the basis of local currency legislation. Sydney and later Melbourne mint coins were also legal tender. Following the end of this period, Australia created a national currency. | |
| November 1866
-1869? |
pegged; local £1 = UK£1 = 7.32238g gold | Queensland, 30 Victoria Nos. 10 and 11, 1866, cited in Chalmers (1893: 280); Vort-Ronald (1979: 20) | The government of Queensland made a temporary issue of notes, dated 1 November 1866, during a period of financial stringency. The exchange rate accordingly changed from fixed to pegged. | |
| 1869?
-3 September 1909 |
fixed; local £1 = UK£1 = 7.32238g gold | New South Wales, Currency Act, No. 3 of 1855, cited in Chalmers (1893: 279) | What is now Queensland was part of New South Wales until created as an independent colony in 1859. Legislation in force in New South Wales therefore applied in what is now Queensland. After Queensland was created, the New South Wales act of 1855 continued to be the basis of local currency legislation. Sydney and later Melbourne mint coins were also legal tender. Following the end of this period, Australia created a national currency. |
Exchange rate arrangements: Western Australia (to 1909)
| Dates | Official arrangement | Source | Unofficial arrangement, if different | Remarks |
| 1829
-1830 |
fixed; local £1 = UK£1; also Spanish $1 = UK 4 shillings 4 pence (Spanish $60 = UK£13) | United Kingdom, Order in Council and Proclamation of 23 March 1825 | The colony was established in 1829. Unlike the case in some other parts of Australia, the pound sterling consistently predominated as unit of account and in what coins were available. | |
| 1830
-1832 |
pegged; local £1 = UK£1; also Spanish $1 = UK 4 shillings 4 pence (Spanish $60 = UK£13) | Western Australia, governor's proclamation of 1830, implied in Chalmers (1893: 282); Butlin (1968 [1953]: 381) | The colonial government issued promissory notes, so the exchange rate changed from fixed to pegged. | |
| 1832
-January 1834 |
fixed; local £1 = UK£1; also Spanish $1 = UK 4 shillings 4 pence (Spanish $60 = UK£13) | Butlin (1968 [1953]: 382) | The colonial government withdrew its note issue, and the exchange rate became fixed once more. | |
| January 1834
-November 1836 |
pegged; local £1 = UK£1; also Spanish $1 = UK 4 shillings 4 pence (Spanish $60 = UK£13) | Western Australia, governor's proclamation of 10 January 1834, cited in Butlin (1968 [1953]: 384) | The colonial government again issued promissory notes, so the exchange rate changed from fixed to pegged. | |
| November 1836
-16 December 1853 |
fixed; local £1 = UK£1; also Spanish $1 = UK 4 shillings 4 pence (Spanish $60 = UK£13) | Butlin (1968 [1953]: 385) | The colonial government withdrew its note issue upon the command of the British government, and the exchange rate became fixed once more. | |
| 17 December 1853
-3 September 1909 |
fixed; local £1 = UK£1 | United Kingdom, Order in Council and Proclamation of 16 October 1852; Western Australia, notice of 17 December 1853 publishing the proclamation, cited in Chalmers (1893: 283-4) | British gold coins made the only unlimited legal tender; British silver coins were limited legal tender; and no other coins were legal tender. Later, Sydney and Melbourne mint coins were also made legal tender. Following the end of this period, Australia created a national currency. |
Exchange rate arrangements: Australia (1909-present)
| Dates | Official arrangement | Source | Unofficial arrangement, if different | Remarks |
| 4 September 1909
-31 October 1910 |
fixed; Australian £1 = UK£1 = 7.32238g gold | Australia, Coinage Act 1909, cited in Australia official yearbook 1916: 771; Pick and Sédillot (1971: 433) | Officially established the Australian pound as a separate currency. The Australian pound was named after the pound sterling. | |
| 1 November 1910
-13 July 1914 |
pegged; Australian £1 = UK£1 = 7.32238g gold | Australia, Australian Notes Act, No. 11, 16 September 1910; Bank Notes Tax Act, No. 14, 10 October 1910; proclamation of 31 October 1910 bringing the Australian Notes Act into force | Note issuance by the federal government began, changing the exchange rate from fixed to pegged. | |
| 14 July 1914
-14 April 1925 |
pegged; Australian £1 = UK£1 | Pick and Sédillot (1971: 433) | See Remarks. | Imposed an embargo on gold exports, suspending the gold standard, during the First World War. From 14 August 1914-13 January 1924, the bid-ask spread for telegraphic transfers exceeded 2%. From September 1924-5 May 1925, the midpoint of the Australian dollar was at a premium (appreciation) exceeding 2% of the official rate in the telegraphic transfer market (Australia official yearbook 1936: 815). |
| 25 April 1925
-17 December 1929 |
pegged; Australian £1 = UK£1 = 7.32238g gold | Pick and Sédillot (1971: 433) | Resumed the gold standard along with the United Kingdom. | |
| 18 December 1929
-27 January 1930 |
pegged; Australian £1.01875 = UK£1 | Australia, Commonwealth Bank Bill, 17 December 1929, cited in Holder (1970, v. 2: 666); Australia official yearbook 1936: 815 | Suspended the gold standard during the worldwide depression that began in 1929. Australian exports, which were mainly commodities, were hard hit by a fall in prices that began in 1928. This was the first in a series of depreciations. Banks rather than by the government set the exchange rate. The rate listed was the midpoint; the selling rate was Australian £1.02125 = UK£1. The Commonwealth Bank Bill gave the government-owned Commonwealth Bank of Australia power to require holders of gold to divulge information on their holdings and to require them to exchange gold for paper money | |
| 28 January 1930
-16 February 1930 |
pegged; Australian £1.023125 = UK£1 | Australia official yearbook 1936: 815 | Banks rather than the government set the exchange rate. | |
| 17 February 1930
-9 March 1930 |
pegged; Australian £1.028125 = UK£1 | Australia official yearbook 1936: 815 | Banks rather than the government set the exchange rate. | |
| 10 March 1930
-23 March 1930 |
pegged; Australian £1.38125 = UK£1 | Australia official yearbook 1936: 815 | Banks rather than the government set the exchange rate. | |
| 24 March 1930
-8 October 1930 |
pegged; Australian £1.063125 = UK£1 | Australia official yearbook 1936: 815 | By this time a parallel market outside the banks existed (Jauncey 1933: 222). | Banks rather than the government set the exchange rate. |
| 9 October 1930
-5 January 1931 |
pegged; Australian £1.0875 = UK£1 | Australia official yearbook 1936: 815 | The parallel market outside banks continued (Jauncey 1933: 222). | Banks rather than the government set the exchange rate. |
| 6 January 1931
-12 January 1931 |
pegged; Australian £1.153125 = UK£1 | Australia official yearbook 1936: 815; Jauncey (1933: 222) | The parallel market outside banks continued (Jauncey 1933: 222). | The exchange rate was set by banks rather than by the government. The Bank of New South Wales led this devaluation. |
| 13 January 1931
-16 January 1931 |
pegged; Australian £1.181875 = UK£1 | Australia official yearbook 1936: 815 | The parallel market outside banks continued (Jauncey 1933: 222). | Banks rather than the government set the exchange rate. |
| 17 January 1931
-28 January 1931 |
pegged; Australian £1.2525 = UK£1 | Australia official yearbook 1936: 815 | The parallel market outside banks continued (Jauncey 1933: 222). | Banks rather than the government set the exchange rate. |
| 29 January 1931
-2 December 1931 |
pegged; Australian £1.3025 = UK£1 | Australia official yearbook 1936: 815; Jauncey (1933: 222) | Foreign exchange from banks was scare; in the parallel market the exchange rate went as high as Australian £1.39 = UK£1 in February 1931. Afer early 1931 the parallel market diminished (Jauncey 1933: 223). | Banks rather than the government set the exchange rate. The Bank of New South Wales again led this devaluation. |
| 3 December 1931
-20 May 1932 |
pegged; Australian £1.25 = UK£1 | Commonwealth Bank of Australia, announcement of 2 December 1931, cited in Jauncey (1933: 224) | The government-owned Commonwealth Bank of Australia re-established a pegged rate to the pound sterling. The rate listed was the buying rate; the selling rate was Australian £1.255 = UK£1 | |
| 21 May 1932
-27 August 1939 |
pegged; Australian £1.25 = UK£1 = 2.86507g gold | Australia, Commonwealth Bank Act of 1932, cited in Vort-Ronald (1979: 101) | Re-established the convertibility of notes into gold. | |
| 28 August 1939
-16 November 1947 |
pegged; Australian £1.25 = UK£1 | IMF, ARER (1950: 54) | RR: An active black market for US dollars from 1946, when data start. Premium in double digits. | Australia imposed exchange controls. |
| 17 November 1947
-18 September 1949 |
pegged; Australian £1.25 = UK£1 = US$3.224 = 2.86507g gold | IMF, 4th Schedule of Par Values, 22 December 1947: 1 | RR: An active black market for US dollars. Premium in double digits. | Australia agreed to a gold parity with the IMF on 6 November 1947 and registered it at the start of this period. |
| 18 September 1949
-13 February 1966 |
pegged; Australian £1.25 = UK£1 = US$2.24 = 1.99062g gold | IMF, 9th Schedule of Par Values, 1 December 1949: 11 | RR: An active black market for US dollars. Premium in double digits through 1957, then single digits. From December 1958, premium was small or zero. | Devalued along with the pound sterling. Again, there was an official rate for the pound sterling but not for the US dollar. As of 18 December 1951, the central bank ceased quoting an official rate for the US dollar and only quoted an official rate for the pound sterling. It did not resume quoting an official rate for the US dollar until 22 December 1971. |
| 14 February 1966
-18 November 1967 |
pegged; Australian $2.50 = UK£1, or Australian $1 = US$1.12 = 0.99531g gold | Reserve Bank of Australia annual report, 30 June 1966: 27 | Introduced the decimalized Australian dollar to replace the Australian pound at Australian $2 = Australian £1. The new currency was called the dollar to reflect that its value was close to that of the US dollar. | |
| 19 November 1967
-16 August 1971 |
pegged; Australian $2.14715 = UK£1, or Australian $1 = US$1.12 = 0.99531g gold | Reserve Bank of Australia bulletin, November 1967: 113; IMF ARER (1968: 29) | Did not follow the devaluation of the pound sterling on 18 November 1967. By this time the United States had become a trading partner about equal in importance to the United Kingdom for Australia, whereas the United Kingdom had been much more important as little as 10 years previously. Following the devaluation of the pound sterling, the foreign-exchange market closed on 20 November 1967 and reopened on 22 November 1967. | |
| 17 August 1971
-21 December 1971 |
pegged; Australian $2.1429-2.1514 = UK£1, or Australian $1 = US$1.191 = 0.99531g gold (nominally) | Reserve Bank of Australia bulletin, August 1971: 29 | Gold convertibility for all countries ended in practice when the United States abandoned the gold standard on 15 August 1971. On 17 August 1971, the central bank withdrew the authority of Australian banks to deal in foreign exchange; it partly restored authority the next day, further extending it on 24 August 1971, and fully restoring it on 13 September 1971, although the central bank continued to monitor capital inflows of Australian $250,000 or more (Reserve Bank of Australia bulletin, August 1971: 29). The government suspended the authority of banks to engage in foreign-exchange transactions on 20 December 1971; banks resumed trading on 23 December 1971, but now with the US dollar rather than the pound sterling as the main counterpart currency (Reserve Bank of Australia bulletin, December 1971: 157). | |
| 22 December 1971
-22 December 1972 |
pegged; Australian $1 = US$1.191 (market rate), or Australian = US$1.216 = 0.99531g gold (nominally) | Australia, prime minister's announcement of 22 December 1971, cited in Reserve Bank of Australia bulletin, December 1971: 157; IMF ARER (1972: 37) | Australia did not follow the devaluation of the US dollar on 18 December 1971, but it switched from the pound sterling to the US dollar as the anchor and intervention currency. Australia also adopted wider margins. The central bank suspended foreign-exchange dealings by commercial banks from 26-27 June 1972, after the United Kingdom floated the pound sterling. The central bank allowed the market to reopened for certain transactions on 28 June 1972; it loosened restrictions on 4 July 1972 and again on 10 July 1972 (Reserve Bank of Australia bulletin, June 1972: 345). | |
| 23 December 1972
-13 February 1973 |
pegged; Australian $1 = US$1.275 = 1.0436g gold (nominally) | Australia, prime minister's announcement of 23 December 1972, cited in Reserve Bank of Australia bulletin, December 1972: 165; IMF ARER (1973: 44) | Revalued slightly in response to strong capital inflows. The interbank foreign-exchange market closed on 12 February 1973; it reopened for spot US dollar transactions with the central bank on 14 February 1973 and for all other transactions the next day. | |
| 14 February 1973
-8 September 1973 |
pegged; Australian $1 = US$1.4167 = 1.0436g gold (nominally) | Australia, Treasurer's announcement of 14 February 1973, cited in Reserve Bank of Australia bulletin, February 1973: 233; IMF ARER (1974: 41) | Retained the previous (nominal) gold parity after the United States devalued the US dollar against gold on 13 February 1973. | |
| 9 September 1973
-24 September 1974 |
pegged; Australian $1 = US$1.4875 = 1.09578g gold (nominally) | Australia, prime minister's announcement of 9 September 1973, cited in Reserve Bank of Australia bulletin, September 1973: 69; IMF ARER (1974: 42) | Revalued against the US dollar and gold during a period of (by later standards modest) weakness in the US dollar. | |
| 25 September 1974
-28 November 1976 |
flexible basket; inoperative gold parity Australian $1 = 1.09578g gold (nominally) | Australia, prime minister's announcement of 25 September 1974, cited in Reserve Bank of Australia bulletin, September 1974: 69; IMF ARER (1975: 45) | RR: De facto band of +/-2% with US dollar from October 1974. | Devalued to Australian $1 = US$1.309, ceased to peg to the US dollar, and announced that exchange rates would, until further notice, be determined daily in a manner to ensure that the average (trade-) weighted exchange rate value of the Australian dollar remained constant. In practice, the exchange rate often remained unchanged for fairly long periods, on the grounds that a fairly predictable exchange rate was good for economic growth. The central bank did not disclose the content of the basket. |
| 29 November 1976
-31 March 1978 |
flexible basket (another type, yet more flexible); inoperative gold parity Australian $1 = 1.09578g gold (nominally) | Australia, Treasurer's announcement of 28 November 1976, cited in Reserve Bank of Australia bulletin, November 1976: 153 | RR: De facto band of +/-2% with US dollar. | Depreciated the exchange rate from Australian $1 = US$1.2329 to Australian $1 = US$ 1.0174 and began smaller, more frequent adjustments of the exchange rate. These measures followed a speculative drain of the central bank's foreign reserves that occurred after a balance of payments deficit and a government budget in September 1976 that proposed higher spending and an increased deficit. Officially, the new arrangement was a variable link to a trade-weighted basket, versus the previous rigid link to a trade-weighted basket. On 7 December 1976, the governor of the central bank announced an adjustment to the basket, effective that day, such that the depreciation since 26 November 1976 was reduced from 17.5% to 15.5% (IMF ARER 1977: 50). The central bank made further small appreciations on 13, 17, 20, 21, 22, 23, and 24 December 1976, and on 18 February 1977. The combined effect of all the appreciations was to reduce the depreciation of 29 November 1976 to 12.2% (Reserve Bank of Australia annual report, 30 June 1977: 8). |
| 1 April 1978
-30 October 1983 |
flexible basket (as above, but with no nominal gold parity) | International Monetary Fund, Board of Governors, Resolution No. 31-4, 30 April 1976 ("Second Amendment") | RR: De facto band of +/-2% with US dollar to November 1982. Managed float from November 1982. | The system of gold par values officially ended by agreement of IMF members. On 8 March 1983, the central bank depreciated currency against the trade-weighted basket by 10% after elections and a change of government; the new initial rate was Australian $1 = US$0.8549 (IMF ARER 1984: 70). |
| 31 October 1983
-11 December 1983 |
flexible basket (another type, still more flexible) | Reserve Bank of Australia, press release of 28 October 1983, reprinted in Reserve Bank of Australia bulletin, October 1983: 213-14 | RR: Managed float. | Taking steps to move toward a managed float, the central bank ceased quoting forward rates for foreign currencies and set the daily exchange rate for the US dollar at the end of the day rather than at 9:30 a.m. as before. |
| 12 December 1983
-present (2005) |
independent float | Australia, Treasurer's announcement of 9 December 1983; Reserve Bank of Australia, press release of 10 December 1983, reprinted in Reserve Bank of Australia bulletin, November 1983: 287 | The government closed the foreign-exchange market on 9 December 1983 and allowed it to reopen on 12 December 1983. The Treasurer (finance minister) announced that in conjunction with moving to a managed float, the government would remove most exchange controls. Australia adopted inflation targeting in 1993. Overall, intervention has been light. Interventions were small from December 1983-June 1986 and the float was clean from December 1993-June 1995. |