The Reserve Bank of Australia was established

14 Jan 2019  Mon

The Reserve Bank of Australia is Australia’s central banking institution, which controls the issuance and supply of the Australian dollar. It commenced its operations on 14th January 1960. This was the conclusion of a long journey towards central banking, which had begun much earlier.

The history of the Reserve Bank of Australia’s dates to 1911 when legislation established the commonwealth Bank Australia, a decade after the country achieved independence from Great Britain. But this act gave the Bank only the ordinary functions of commercial and savings banking.

It was not initially regard as a central bank, and d it was not responsible for the note issue until 1924 when the Commonwealth Bank Act put it in charge of issuing the Australian pound.

The bank, entirely owned by the Australian government, was established in 1960. From then, the bank has the responsibility of providing services to the Government of Australia in addition to also providing services to other central banks and official institutions. In 1966 Australia withdraws the Australian pound and exchanged it with the Australian dollar (AUD), which was divided into 100 cents.

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