//
you're reading...
Australian History

January 14, 1960 – Reserve Bank of Australia established


Reserve Bank of Australia Headquarters, Sydney

Reserve Bank of Australia Headquarters, Sydney

On January 14, 1960, The Reserve Bank of Australia, the country’s central bank and banknote issuing authority, was established.

The Reserve Bank of Australia (RBA) has had this role since 14 January 1960, when the Reserve Bank Act 1959 removed the central banking functions from the Commonwealth Bank.

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.

It currently consists of the Payments System Board, which governs the payments system policy of the bank, and the Reserve Bank Board, which governs all other monetary and banking policies of the bank.

Both boards consist of members of both the bank, the Treasury, other Australian government agencies, and leaders of other institutions that are part of the economy. 

The structure of the Reserve Bank Board has remained consistent ever since 1951, with the exception of the change in the number of members of the board.

The governor of the Reserve Bank of Australia is appointed by the Treasurer and chairs both the Payment Systems and Reserve Bank Boards and when there are disagreements between both boards, the governor resolves them.

From the middle of the 19th century into the 1890s, the prospects for the forming of a national bank grew.

In 1911, the Commonwealth Bank was established, but did not have the authority to print notes, which was a power that was still reserved to the Treasury.

A movement toward reestablishing the gold standard occurred after World War I, with John Garvan leading various boards in contracting the money supply on the route to doing so, and the gold standard was instituted for both the British pound sterling and the Australian pound in 1925.

During the Great Depression, the Australian pound became devalued, no longer worth the same as the pound sterling, and formally departed from the gold standard with the Commonwealth Bank Act of 1932.

Legislation in 1945 led to regulation of private banks which H.C. Coombs was opposed to, and when he became governor in 1949, he gave them more overall control over their institutions. 

When the monetary authorities implemented the advice of Coombs to have a flexible interest rate, it allowed the bank to rely more on open market operations. 

In 1980 the issue of short-term government bonds – Treasury notes of 13 and 26 weeks duration – changed from a tap system, in which the price was set, to a tender system in which the volume of stock was set and the price determined by the market.

Soon afterwards the tender system was extended to the issue of longer-term government bonds.

The float of the Australian dollar happened in 1983, around the same period of time that the financial system in Australia was deregulated.

Administration of the banks was transferred in 1998 from the bank to the Australian Prudential Regulation Authority and the Payments System Board was created, while the bank was given power within the board in the same year.

The current governor of the Reserve Bank is Philip Lowe, who succeeded Glenn Stevens as governor on 18 September 2016.

About Craig Hill

Teacher and Writer. Writing has been cited in New York Times, BBC, Fox News, Aljazeera, Philippines Star, South China Morning Post, National Interest, news.com.au, Wikipedia and others.

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

If you liked what you just read, click "Subscribe" to become a follower of the Craig Hill site. You will receive an email each time a new post is published.

Join 15,358 other followers

An archive of all my old posts

Follow me on Twitter

Most Recent Posts Post on My Blog About China: China News

United States outmanoeuvres Russia once again? 

United States outmanoeuvres Russia once again? 

In a recent briefing, the US Director of National Intelligence (DNI), Avril Haines warned, “I would characterize it as the Russians aren’t winning, and the Ukrainians aren’t winning, and we’re at a bit of a stalemate here.” So, where is the Russia-Ukraine war heading? What is Russian President Putin planning next? Is Europe ready for […]

China is defying global order to expand power, US admiral warns

China is defying global order to expand power, US admiral warns

The Chinese Communist Party and the People’s Liberation Army (PLA) are destabilizing international order in an effort to expand their global power, Adm. John Aquilino, commander of the Indo-Pacific Command, warned lawmakers during a House hearing on Tuesday. In his written testimony submitted to the House Appropriations defense subcommittee, Adm. Aquilino explained that the Department […]

China – Autocracy and decoupling technical tests

China – Autocracy and decoupling technical tests

We have noticed that the embrace with China had become suffocating in the last twenty years. The West universe of consumers and China the factory of the world. We started with modest and low value-added materials and products, to refine the trajectory and revolution to the most refined and complex technologies, such as 5G and […]

Four ways China is growing its media influence in Southeast Asia

Four ways China is growing its media influence in Southeast Asia

As President Biden welcomes leaders of the Association of Southeast Asian Nations to a special summit this week in Washington, D.C., his administration is affirming Beijing as the U.S.’s main rival and underscoring the region’s importance in U.S.-China competition. The two-day event is part of the U.S effort to woo ASEAN members caught in a […]

Confronting Russia will deter China, says Japanese defense minister

Confronting Russia will deter China, says Japanese defense minister

A strong international response to the Russian invasion of Ukraine is critical to deterring China from embarking on territorial conquests in Taiwan or the South China Sea, said Japanese Defense Minister Nobuo Kishi. “China has been carefully observing the current situation of Russia’s aggression against Ukraine and they are paying particularly close attention to what […]

How Russia-Ukraine copied Finland war without lessons

How Russia-Ukraine copied Finland war without lessons

Finland is a unique country with a distinct language and culture. However, its possession was always contested between Sweden and Russia. Though Finland mainly remained under Swedish control in 1809, it was annexed by Russia. Using the end of World War I and the Bolshevik Revolution in late 1917, Finland declared its independence from the […]

China plans system to take out asteroids hurtling toward earth

China plans system to take out asteroids hurtling toward earth

China plans to develop a system for monitoring asteroids that pose a threat to earth, highlighting the nation’s growing ambitions for its space program. The country will also explore ways for taking out asteroids that endanger the planet, Wu Yanhua, deputy director of the China National Space Administration, said in a TV interview, according to […]

Russia-Japan tensions flare anew over the Kurils

Russia-Japan tensions flare anew over the Kurils

Formally, Russia is not at war with Ukraine, where it claims to be conducting a so-called “special military operation.” But with Japan, given that Moscow and Tokyo never signed a peace treaty officially ending World War II, the two Asian neighbors remain technically at war. And after Japan recently described four Kuril islands whose ownership […]

Solomon Islands has Washington in state of alarm after a security pact with China

Solomon Islands has Washington in state of alarm after a security pact with  China

A tiny island chain in the South Pacific has Western governments scrambling after it agreed to a security pact with China that the United States and its allies fear could enhance Beijing’s military power in this strategically important region.  The deal between China and the Solomon Islands, a nation of 700,000 people that had deadly […]

China says its ‘future helicopters’ will be equipped with ground-breaking technologies

China says its ‘future helicopters’ will be equipped with ground-breaking technologies

Militaries all around the world are looking at integrating modern technology into their military weapons. China, as usual, appears to be making serious efforts to prepare for the future battleground, this time, with plans to include artificial intelligence and high-speed features in its future choppers. During a recent public lecture, a prominent Chinese military helicopter […]

%d bloggers like this: