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Three reasons AUD is one of the most-held reserve currencies in global reserves
The Australian dollar, or AUD, may not be as widely known as the US dollar (USD) or the Euro (EUR), but it is often among the top five most-held reserve currencies in the world. But what is it that makes AUD stand out and prove popular with central banks, traders and investors?
In this article, we put this currency under the spotlight to explore what does AUD mean, where to buy AUD safely in the UK, how to convert it and the top three reasons why it’s held in global reserves. But first, let’s take a close look at what is AUD.
What is AUD?
AUD stands for the Australian dollar; it is the currency code for Australia and the official currency of the country. AUD is issued and managed by the Reserve Bank of Australia and is also used in a few other countries such as Kiribati, Nauru and Tuvalu.
Australia’s economy is known for its stability, transparency and strong links to Asian markets. These are among some of the reasons why AUD is widely used in global trading and is one of the most-held reserve currencies in global reserves. AUD is often viewed as a reliable indicators of sentiment in the Asia-Pacific region.
Why AUD matters in global currency markets
There are three main reasons why AUD matters in global currency markets, and why it often features as one of the most-held reserve currencies in global reserves. Here are three reasons why AUD matters in global currency markets:
1. Economically stable with strong governance
The Reserve Bank of Australia is known for its transparent and consistent monetary policy. Australia’s economy has enjoyed long periods of growth with low public debt, which gives central banks confidence in holding AUD as part of their currency reserves.
2. Australia is commodity-rich and well connected
As one of the world’s biggest exporters of minerals, metals and agricultural goods. As AUD is closely tied to global commodity prices, the currency plays an essential role in international trade. Australia is closely linked and well connected with China, Japan and South Korea.
3. Extended reach and regional use
AUD is widely used across the Asia-Pacific region and beyond. Its adoption in places like Kiribati, Nauru and Tuvalu extends its reach and usage. The currency’s strong presence in regional trade makes it a useful and dependable reserve for many economies.
How to convert AUD to other currencies
Converting AUD to other currencies is simple with Halo Financial. AUD can be easily converted into a range of global currencies and with Halo Financial you can easily track all your conversions and trades online.
Popular exchange pairs include:
Live AUD exchange rates
Live exchange rates reflect global demand and are influenced by everything from interest rate announcements to commodity prices. With the right tools, you can track how AUD performs against currencies like EUR, USD and GBP in real time, helping you make better decisions.
AUD/GBP
Below you can see the AUDGBP rate as of 1 January 0001 at 12:00 AM
1 AUD = 1 GBP |
1 Australian Dollar = 1 British Pound |
Need to make a Australian Dollar to British Pound money transfer?
The current Australian Dollar to British Pound (AUD/GBP) Exchange Rate as of 1 January 0001 at 12:00 AM is 1 AUD = 1 GBP
AUD/USD
Below you can see the AUDUSD rate as of 1 January 0001 at 12:00 AM
1 AUD = 1 USD |
1 Australian Dollar = 1 United States Dollar |
Need to make a Australian Dollar to United States Dollar money transfer?
The current Australian Dollar to United States Dollar (AUD/USD) Exchange Rate as of 1 January 0001 at 12:00 AM is 1 AUD = 1 USD
AUD/EUR
Below you can see the AUDEUR rate as of 1 January 0001 at 12:00 AM
1 AUD = 1 EUR |
1 Australian Dollar = 1 Euro |
Need to make a Australian Dollar to Euro money transfer?
The current Australian Dollar to Euro (AUD/EUR) Exchange Rate as of 1 January 0001 at 12:00 AM is 1 AUD = 1 EUR
How to buy AUD safely
If you’re in the UK and want to buy AUD, it’s best to go with a trusted currency specialist. Banks and airport kiosks often offer poor rates and high fees. Look for a provider like Halo Financial, where you can buy AUD securely and get expert support. Features like rate alerts, forward contracts or setting a target rate can also help you get more value from your exchange.
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