//
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 )

Google photo

You are commenting using your Google 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 14,844 other followers

An archive of all my old posts

Follow me on Twitter

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

2021 Olympic viewership: China vs USA

2021 Olympic viewership: China vs USA

At least 4 reasons explain the differences between China and the USA on viewership of the 2021 Tokyo Olympic Games. While the viewing of the Games both live and via media reporting in Greater China — mainland, Taiwan Island, Hong Kong SAR and Macau SAR — surpassed old records, the attention of the US public […]

‘Made in China’ products are running into new international shipping problems

‘Made in China’ products are running into new international shipping problems

Chinese companies wanting to go global are running into shipping problems. Access to cheap manufacturing at home gave Chinese businesses an advantage overseas. But it’s turning into a disadvantage now, as the pandemic and trade tensions disrupt international supply channels. Many goods can’t be shipped out, said Fang Xueyu, vice president of international marketing and […]

The dubious terms of China’s massive international loan spree

The dubious terms of China’s massive international loan spree

China is the world’s biggest lender to governments. And that’s not just because of its gigantic stockpile of US Treasuries. For much of the past decade Beijing has sought to plug massive infrastructure funding gaps across multiple continents through its Belt and Road Initiative. The overarching aim, other than to bolster global influence, is to […]

Analysis of China’s “Belt and Road” Initiative: Genesis and Development

Analysis of China’s “Belt and Road” Initiative: Genesis and Development

Understanding the foreign policy and geo-economic strategies of countries, especially in such a difficult time when national borders are closed and the “militarization” of cybersecurity (Hopkins, 2012), becomes an important, if not vital, task for each individual country in its attempts to take its rightful place in building a new world order and development economy. In the […]

China decides to engage with Afghanistan’s Taliban to further persecute Uyghurs

China decides to engage with Afghanistan’s Taliban to further persecute Uyghurs

With the United States withdrawing and the Taliban having swept to control of about half of Afghanistan, few observers give the Afghan government much chance of survival. September may be a decisive month, when the withdrawal is complete and American air operations against Taliban positions end. That is the background to Foreign Minister Wang Yi’s […]

Cadence Column: Asia, August 2, 2021

Cadence Column: Asia, August 2, 2021

British aircraft carrier HMS Queen Elizabeth is trudging through China’s backyard. Chinese government news “Global Times” describes Britain as trying to relive its old days. China was never happy about getting its ass whipped twice in the Opium Wars, which China provoked with its economic philosophy that “sliver-in, tealeaves-out” was sustainable trade. China, now with […]

Attacks on foreign journalists in China cast shadow over Beijing’s upcoming Olympics

Attacks on foreign journalists in China cast shadow over Beijing’s upcoming Olympics

After promises during the 2008 Olympics, “[f]ew could have imagined the CCP stooping to the level of running campaigns against individual news reporters and outlets, resulting in harassment and death threats against foreign reporters,” writes William Nee. On July 20, in the central plains of Henan province, one of China’s most important regional cities, Zhengzhou, […]

Tibet and China clash over next reincarnation of the Dalai Lama

Tibet and China clash over next reincarnation of the Dalai Lama

A couple of years ago, during a meeting of Tibetan leaders in Dharamshala in India, Tenzin Gyatso, the 14th Dalai Lama, was asked about his reincarnation. Addressing the room of monks, religious teachers and Tibetan politicians, the Dalai Lama asked them to look into his eyes. “Do you think it’s time now?” he asked. It […]

China orders one member of each Tibetan family to enlist in the military to fight against India

China orders one member of each Tibetan family to enlist in the military to fight against India

China has been hatching several conspiracies since its defeat on the eastern Ladakh border against India last year. Considering the fact that Tibetan youth can play a vital role in fighting India in the Himalayan mountains on the borders of eastern Ladakh to Arunachal Pradesh, China has made it mandatory for one member of every […]

China warns UK as carrier strike group approaches South China Sea

China warns UK as carrier strike group approaches South China Sea

China has warned the UK’s Carrier Strike Group, led by the aircraft carrier HMS Queen Elizabeth not to carry out any “improper acts” as it enters the contested South China Sea. ‘The People’s Liberation Army Navy is at a high state of combat readiness’ says the pro-government Global Times, seen as a mouthpiece for the […]

%d bloggers like this: