Currencies
Australian Dollar Marks 40 Years of Local Resilience, China Reliance
- Float created shock absorber for economy still effective today
- Though currency trades far below heights of mining-boom era
Photographer: Brent Lewin/Bloomberg
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The float of the Australian dollar 40 years ago today forged a shock absorber that helped the country weather decades of economic turbulence and to punch above its weight in global financial markets.
It may have been a tumultuous ride for what’s now one of the world’s most-traded currencies, but the highs and lows over four decades have shielded the resources-reliant economy from inflation pressures following commodity booms and helped boost exports during times of global crisis.