AUD (Australian Dollar)
The Australian Dollar represents the economy of Australia and is the fifth most commonly traded currency in the world.
The Australian Dollar had a fixed exchange rate until 1983 when the Australian Labor government floated the currency. The Australian Dollar was part of the Bretton Woods system from 1946 to 1971 with which the Australian Dollar was pegged to the British Pound (which was fixed to the US Dollar which was pegged to Gold) until 1967. As Bretton Woods began to break down, the value of the Australian Dollar was converted to a traditional peg against a floating US Dollar.
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In 1983, the Australian Dollar was set to a free-floating exchange rate that could reflect the balance of payments and market drivers for the Australian economy.
Australia is noted for being the first country in the world to move to a complete system of bank notes made from polymer or plastic, first introduced in 1988 with the entire currency converted in 1996.
Of recent, The Australian Dollar was a favorite of carry traders as the commodity boom helped keep interest rates elevated while much of the developed world struggled with contractionary economic pressures. Interest rates were very low in developed economies such as The United States, Japan, and Europe and traders could borrow funds in these economies to invest in higher rates in Australia. This helped to drive The Australian Dollar to all-time highs against the US Dollar in 2011.