Whether living, holidaying or trading with Australia, it is useful to know how its currency stands concerning the rest of the world.
The Australian dollar that is legal tender in Australia is also used as the currency for its external territories. These include Norfolk Island, Cocos Islands, and Christmas Island. The currency is also in official use at the three independent Pacific states of Nauru, Kiribati, and Tuvalu.
So, now we know more about the currency and where it can be used in Australia, let us think of four things that we should know when exchanging it. The most important being the best exchange rates.
Finding the Best Rates
Now that the internet can be used as a source of information, it is easier than ever to be to locate the best exchange rates. This is one way to ensure that you get value for money when you are wanting to convert it into the currency needed for your situation.
Apart from knowing the best places to look, you should also know how to calculate an exchange rate.
Instead, online currency converters on comparison sites are good for calculating exchange rates, and then it is a case of settling on a site to buy your currency from. Currency converters will allow you to see in an instant just what the currency is worth at any point in time. The rates will generally be in real-time for your convenience and to get the timing just right.
Knowing When to Exchange
Another tip for achieving the best rate for your money is to exchange at the time most beneficial for your country. This can be worked out by looking at the trends in exchange rates over time. It might be a clue to which direction an exchange rate is heading in, Also, what is going on with the economy in your country compared to another can impact exchange rates. You want your economy to be stronger when you make the exchange of currency.
There is a school of thought that exchanging currency later in the week will lead to a better rate. Certain days can suit certain currencies. For instance, those transferring pounds into foreign currencies will typically find Friday the best day to do it to get the better rate. While Monday and Tuesday will be the most expensive for them. However, what is a good day for one country has to be a bad day for another in terms of currency exchange. So, look at some past rates to see just what is happening with your particular country compared to others. You never know, following currency rates may become a fascinating hobby. Investors certainly do it, as do business people and holidaymakers, to benefit their finances from timing things just right.
The Current Trend for the Australian Dollar
The good news for Australians is that the trend for 2021 is for the Australian dollar to rise. Australia’s top four banks are predicting around 75 cents against the American dollar this year. This will be around 5 cents higher than in 2020. So, this is a good direction to be heading in for Australians looking to holiday elsewhere. However, if you are looking to holiday in Australia from elsewhere, you are going to need to think seriously about buying your currency early before rates reach even higher levels. This is the best plan of action where rates in a particular country are looking like they are going to continue to rise.
For those who are into collecting coins, it is interesting to know what each of a country’s coins depicts. In Australia, for instance, it is:
Five Cents – Echidna
Ten Cents – Lyrebird
Twenty Cents – Platypus
Fifty Cents – Commonwealth Coat of Arms
One Dollar – Five Kangaroos
On the one hand, having your exchanged cash in notes and coins is fascinating to look at but, on the other hand, less convenient for paying. Most exchanges will be between bank accounts, with the cash put in the right currency in advance to control the timing of the exchange. The right kind of bank accounts is, of course, required to deal with foreign transactions. Credit cards help with foreign payments too.
So, our four tips when exchanging currency, whether from Australia or elsewhere, are to look for the best rates, to study the best times to make an exchange of currency, to study the trends in the economy before making the decision, and also to consider why you want the currency. There are collectors and investors of currencies as well as those looking to use it as a method of payment for a particular country.