The Australian Dollar

The Australian Dollar has over 7.6 percent share in daily currency transactions. Prior to 1911, private trading banks were issuing currency in Australia and in 1911, legislation established the Commonwealth Bank of Australia. However, at that time the bank was just like a commercial bank and did not assume the responsibilities of a central bank. Then, the Australian Department of the Treasury was in charge of issuing notes. In 1924, the Commonwealth Bank Act was amended and the Bank was given control over the note issue. From this time until 1945, the Bank gradually evolved its central banking activities. In 1959, part of the Commonwealth Bank of Australia was renamed as the Reserve Bank of Australia to fulfill the functions of a central bank. The commercial banking functions were kept by the Commonwealth Bank of Australia.