Australia's Floating Exchange Rate System (HSC SSCE Economics): Flashcards
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Year Australia adopted floating exchange rate
Year Australia adopted floating exchange rate
December 1983
Determinant of A$ value in floating system
Determinant of A$ value in floating system
Market forces of supply and demand
Appreciation of currency means
Appreciation of currency means
Currency increases in value relative to another currency
Depreciation of currency means
Depreciation of currency means
Currency decreases in value relative to another currency
Effect of higher Australian interest rates on A$
Effect of higher Australian interest rates on A$
Increases demand for A$, causing appreciation
Effect of rising commodity prices on A$
Effect of rising commodity prices on A$
Increases demand for A$, causing appreciation
Trade Weighted Index (TWI) measures
Trade Weighted Index (TWI) measures
A$ value against currencies of major trading partners
Highest weighted currency in TWI (2022-23)
Highest weighted currency in TWI (2022-23)
Chinese renminbi at 30.7%
Peak value of A$ in recent decades
Peak value of A$ in recent decades
USD 1.10 in 2011
Primary driver of recent A$ movements
Primary driver of recent A$ movements
Commodity prices