From the moment we left our shores, the Australian dollar has been pegged to the euro, with the US dollar hitting an all-time high against the Australian currency in December.
But, as the Australian economy has recovered from the global financial crisis, the currency has begun to lose some of its luster.
In fact, it is no longer a fair-trade, Australian dollar.
In a move that could shake up the Australian housing market, the Federal Government is introducing legislation to remove the Australian Dollar from the Australian exchange rate.
The change is part of a series of changes to the Australian foreign exchange market that are part of the Government’s efforts to reduce volatility.
“The Federal Government’s intention is to remove a portion of the Australian Exchange Rate from the value of the dollar as of 1 July 2019,” Finance Minister Mathias Cormann told reporters on Thursday.
“That’s going to be a very large step forward.
We’re going to do it to get a real reduction in the volatility in the Australian property market.”
The changes have been welcomed by some analysts, including Mark Carney, the Governor of the Bank of Australia.
“The introduction of the Federal Reserve’s change in foreign exchange rates to remove Australian Dollars from the exchange rate will boost the Australian home market and, more importantly, boost Australia’s export potential,” he said in a statement.
“We expect that a reduction in exchange rate volatility will drive the economy further forward.”
However, the Government has acknowledged that some countries will still see significant price swings as the currency moves higher.
“There are going to still be a lot of countries that are going lower and we need to be careful about those countries moving lower,” Mr Carney said.
The move to remove Australia’s currency from the international exchange rate comes at a time when many Australians are buying property and are relying on the local currency. “
But at least we can predict the future and, hopefully, get more of a return on our investments.”
The move to remove Australia’s currency from the international exchange rate comes at a time when many Australians are buying property and are relying on the local currency.
So what happens when the Australian dollars become less stable?
“It’s not that you’re going, ‘Well, I’m going to take my money out of the bank now’,” Dr Carroll said.
He pointed out that the Government is not trying to drive up prices or increase the value, but to get the exchange rates lower.
Dr Carroll said that there were plenty of other reasons for Australians to be cautious when buying property.
“When you buy property you’re buying a house for $1.4 million and that house is going for $2.4m and you’re thinking, ‘OK, I could probably get it for that kind of money and that kind’ of property,” he told ABC Radio National.
“You know, the average home in Australia is about $1,100,000.
So if you look at the market, it’s a really small house and you would probably buy that home for $600,000.”
What happens if the Australian Dollars become too unstable?
“Well, there are lots of people that have bought their houses in Australian dollars and they would like to sell them in Australian Dollars and the banks will not let them do that because they think that will drive up the price of the house,” Dr Carroll explained.
“So, it’ll be very hard for them to sell those houses.”
But if the local currencies become too volatile, the banks could say, ‘Oh, we’ll have to give you a discount’.
“The change in exchange rates comes after the Government announced last week that it would start restricting foreign currency withdrawals.
As a result, people who were previously able to convert Australian dollars to Australian dollars will now be forced to convert their Australian dollars back into Australian dollars.
And the Government said that people with foreign currency in their accounts would be able to withdraw their foreign currency directly from the bank.
But those who are still using Australian dollars may find it difficult to convert them back to the dollar.
How do Australians feel about the change?”
It seems to be the first step in a process that will have a lasting impact on the Australian household economy,” Dr Carleton said.
Dr Carroll, a professor of economics at the University of Sydney, said that he believed the changes were a good thing.”
I’m a little bit nervous, but I think it’s probably a positive step in the right direction,” he explained.
What other changes are the Federal Governments plans to make to the foreign exchange markets?
The Government has also announced that it will start restricting the sale of some foreign currency-denominated securities.
It is also introducing a new foreign currency rate cap, which will affect the Australian Government’s foreign currency holdings.
Australia is also making moves to make foreign currency trading more transparent, including by making it easier to compare the foreign currency rates in foreign