The official currency of the commonwealth country, Australia, is the Australian Dollar, and its symbol is AUD or A$. It is the fifth most traded currency in the world and also holds the title of the most colourful currency. Australia is also the real inventor of plastic money as back in 1988, they decided to use polymer instead of paper for their currency to fight fake notes. Also known as Aussie, the currency has denominations starting from A$1 and going up to A$100. Each Aussie is further subdivided into cents, and 100 cents make up a Dollar. An AUD can be easily converted into any currency, including the Indian Rupee (INR), using a currency converter tool. Scroll down to use Jupiter's currency converter tool.
Which exchange rate does Australia use?
Australia has used a floating exchange rate regime ever since 1983. This means the value of AUD in terms of other currencies is determined by market demand and supply forces.
Australia adopted a floating exchange rate regime primarily to control the money supply in the country. With a fixed exchange rate system, it was difficult to control the country's money supply, leading to volatility in domestic monetary conditions and inflation.
In contrast, a floating exchange rate provided a buffer to absorb external shocks and kept inflation under check. Moreover, it gave the Reserve Bank of Australia (RBA) the discretion to set the monetary policy based on the domestic market conditions rather than restricting it to a target exchange rate level.
How to convert INR to AUD?
To convert one currency into another, you have to divide the former currency by the exchange rate. Therefore, to convert INR to AUD, you will have to divide the Indian rupee with the AUD INR exchange rate.
Let’s understand this with an example. To convert Rs 3 lakhs into AUD, you will have to divide this by the current exchange rate, which is Rs 56.34.
AUD = 3,00,000/56.34
AUD = 5,325
Although this looks like a simple calculation, changing exchange rates can make it tedious. In this case, using a currency converter is better. A currency converter uses the latest exchange rate and calculates the value of either of the currencies within seconds. Jupiter's currency converter is one such tool that uses the latest exchange rate and estimates the value of a currency in terms of another currency within seconds.
Why is AUD strong now?
The Australian Dollar is a strong currency compared to India and several other countries. The main reason behind this is a healthy economy. Australia has low debt, stable unemployment levels, and has AAA status credit rating. Moreover, a major source of revenue for the country is mining. With demand from Asian countries increasing, Australia’s mining and export sectors are thriving. As a result, the AUD is strengthening.
Why did Australia change its currency from Pounds to Dollars?
Australia changed its currency from Pounds to Dollars in 1966. One of the primary reasons for this change is to simplify the math by introducing decimalization. A pound is divided into 20 shillings of 12 pence each, making financial transactions slower and more complicated. In contrast, one Dollar is divided into 100 cents, making it easy and simple to deal with money.
Can Indian Rupees (INR) be equal to Australian Dollars (AUD)?
The Indian Rupee can never be equal to the Australian Dollar. Let's say if both currencies are in parity, the imports will undoubtedly be cheaper. However, India's exports will become costlier. This will ultimately reduce India's exports, leading to a fall in India's income. Moreover, India is known for its cost-efficient skilled labour. With INR and AUD being equal, India's labour will no longer be considered cheaper. This will result in high unemployment, ultimately leading to a recession and reducing India's growth rate.
Frequently Asked Questions
Can a tourist from India to Australia exchange Indian currency for Australian Dollars after reaching an Australian airport?
Yes, you can convert INR to AUD at any airport in Australia. However, the exchange rate at the airports is usually high. Hence it is better to convert INR to AUD in India itself.
What currency does Australia use?
The legal tender in Australia is the Australian Dollar. Its symbol is AUD or A$ and is the fifth most-traded currency in the world. The currency’ denominations include A$1, A$2, A$5, A$10, A$20, A$50, and A$100. Each Dollar is further divided into 100 cents. Apart from Australia, AUD is used on Christmas Island, Coral Sea Islands, Cocos Islands, Heard Island, Kiribati, and McDonald Islands.
Which currencies are accepted in Australia as a traveller for 30 days?
Australia accepts only Australian dollars (AUD). However, it also accepts credit cards such as American Express and Diners Club. It is best to carry Australian Dollars when travelling to Australia so you can shop at local shops.
How many Australian dollars can I carry while travelling from India to Australia?
There is no limit on the maximum amount you can carry in AUD. However, if you carry more than AUD 10,000, you will have to declare it at customs.
What was the value of Australian Dollars in Rupees in 1947?
The Australian Dollar was born in 1966 after the country adopted decimalization. Prior to that, Australia used the Australian Pound. In 1966, the AUD to INR rate was Rs 7.13.
Is there any specific limit to carrying Australian Dollars if I travel to Australia?
There is no upper limit as such. However, if you carry more than AUD 10,000, it must be declared to the authority.