Similar to other continents the Australia/Oceania has multiple countries that practice multiple currencies. However, the dominant currencies in this continent constitute of the Australian Dollar, the New Zealand dollar and the United States Dollar used by various dependent and smaller territories in Oceania. Apart from these the CFP franc is also used by some countries and is in circulation within the French overseas territories. Australian dollar that occupies fifth place in the Global Forex Market placed by turnover is considered to be the most traded currency while the New Zealand dollar is included amongst the top 12. Currencies in some or the other form have existed since the past 3000 years. Prior to the introduction of coins and paper notes humans used the barter system to buy whatever they needed. Currency is important because it helps people understand the value of goods and services and then trade them. Various countries of Australia/Oceania have adopted different currencies as the medium of exchange that has been evolving constantly.
Dominant currencies in Australia/Oceania that you should know!
A currency and especially the diffusing coins and banknotes is a medium of exchange. In simpler terms currency is a monetary unit or a system of money used commonly in a nation. Let us see some of the dominant currencies Australia/Oceania.
Commonwealth of Australia which is inclusive of Australia, Keeling Islands, Nauru, Kiribati, and Norfolk Island and Christmas islands use Australian Dollar as their official currency. In the money market, Australian Dollar is recognized through its abbreviations i.e. A$ or AU$. It is composed of subunits called as cents and 100 Cents make 1 Australian Dollar. Issued on 14th February 1966, Australian Dollar replaced the Australian Pound. Prior to the adoption of this currency by the government, there was a confusion in its name with other names like emu, roo, the Zac, Boomer, and the ming and amongst other names that were proposed. The Australian dollar is known to be the fifth most traded currency across the world after the Euro, the US Dollar, the Yen, and the sterling pound. As per ISO 4217, the currency code for the Australian Dollar is AUD.
New Zealand Dollar
Often represented using the symbol $ or NZ$ the New Zealand dollar is the currency of New Zealand and has the currency code NZD as per the ISO 4217. It is further subdivided into cents i.e. 100 cents make 1 New Zealand Dollar. Apart from this New Zealand dollar is also used as a currency in the Cook Islands, Tokelau, Niue, and the Pitcairn Islands. The New Zealand Dollar is generally referred to as a kiwi because the national bird is usually found stamped onto the one-dollar coin. NZD/USD pair value is quoted as 1 New Zealand dollar per x US dollar. 1 NZD= 1.5 USD. The New Zealand dollar was introduced in the year 1967 and is subdivided into cents with altogether 10 denominations that comprise of five banknotes and five coins. Earlier the currency also had lower denominations but these were later discontinued because of the production costs or inflation. In the global exchange market, the New Zealand Dollar makes a great contribution that is quite fair in relation to the global GDP or population of New Zealand. This value of NZD/USD is affected by the factors that tend to impact the value of UD dollar or the New Zealand Dollar. The Reserve Bank of New Zealand holds the right of circulation of the banknotes and coins of the New Zealand Dollar. Ranked as 11th the foreign exchange market, the New Zeeland’s Dollar has a share of the daily turnover of about 2.1% and it has been consistently rising.
Apart from the dominant currencies i.e. US dollar, Australian Dollar and the New Zealand dollar the countries in this continent also make use of other currencies like CFP franc, Fijian dollar, Solomon Islands Dollar, Papua New Guinean Kina and even more. The currency in the form of coins and banknotes is used for the exchange of goods and services. In Australia/ Oceania continent the Australian Dollar is the most dominant currency followed by the New Zealand dollar and the US dollar.