AUSTRALIA’S central bank has confirmed it will start to print $1 notes for the first time on Wednesday, the first of several rounds of a currency swap.
The new notes will be made of a “new and shiny metal” called palladium alloy, a rarity in the world.
This new metal will make the $1 bills more durable than copper coins, the bank said in a statement.
“It also allows us to replace the metal with a durable, long-lasting material that is easier to transport and use,” Reserve Bank of Australia Governor Glenn Stevens said in the statement.
“This is a great step forward for the economy, our residents and our nation.”
The Reserve Bank said the move was a “pre-emptive” move to boost the economy and that the new currency would become widely used by Australians in the coming weeks.
It will be used by consumers, businesses and consumers of financial products, as well as by businesses.
Inflationary pressures are expected to hit the Australian dollar in the weeks ahead.
But the Reserve Bank’s move comes just days after the Reserve Banks of Australia, the Bank of England and the International Monetary Fund (IMF) all warned that the global economic outlook was improving, though the outlook for the Australian economy has been hit by the global financial crisis and the country’s current low commodity prices.
The currency swap is being made possible by the Reserve’s “quantitative easing” program, which has been the central focus of the countrys monetary policy for the past two years.
Australia’s monetary policy is being tightened in the face of rising inflation and rising consumer spending, according to Stevens, who said the Reserve would “do whatever it takes” to keep the currency stable.
Key points:The Reserve said the change would make the currency easier to useThe Bank of New Zealand has been printing $1s to boost growth since late last yearBut the move to the new metal has been controversial as it comes amid rising inflation fearsThe Bank has been raising interest rates on the basis of its low inflation outlook.
There have been widespread fears that Australia will be left behind the rest of the world as its economy stagnates, and that this will have a negative impact on its economy.
A Reserve Bank spokeswoman said it was doing all it could to make sure that Australia’s economy could be sustained in the long term.
She said the bank was concerned about the prospect of a sharp rise in inflation in the next two years, but that it was making the right decisions to manage this.
Ms Stevens said the new material was “better than copper”.
“I think it is better than copper because it is lighter, lighter and lighter,” she said.
“It’s much harder to get, it’s more resilient, it has a higher melting point, and it has the advantages of being a much lighter metal.”
The bank is also working to lower the value of the Australian Dollar, which is used as a benchmark for international trade, to a “fair value”, which would give Australia a better return on its currency.
With the currency swap, the Reserve will stop the currency’s rise in value against the US dollar, which currently sits at about $1.25.
If the Reserve was to raise interest rates, the dollar would rise against the Australian and the US, and the Australian currency would rise to about $US3.70.
While there are fears the Reserve might be forced to raise rates, it is not clear whether it would do so in the near future.
As a result, the rate rise would only be temporary, Ms Stevens said.
Stevens said it would also “be a good thing for Australian families and businesses to keep a close eye on their financial circumstances and the cost of living in Australia.”
He said the next step would be to start a process of re-designing the currency to make it easier to exchange, and to develop a “digital wallet” for consumers and businesses.
“We will also look at ways to provide a more streamlined and more secure financial experience for the people of Australia,” Stevens said, saying this would include making the notes more secure to use and make the notes cheaper for businesses.