What Was once as soon as the Christmas Island Dollar?
The Christmas Island Dollar used to be as soon as the professional foreign exchange of Christmas Island, which is a small Australian island situated throughout the Indian Ocean. The foreign exchange was old-fashioned after the island was an Australian territory. As such, the island uses the Australian dollar (AUD) as its foreign exchange. Christmas Island is known for its phosphate mines. It used to be as soon as discovered by means of a British captain named William Mynors, who sailed by means of it on Dec. 25, 1643.
Key Takeaways
- The Christmas Island dollar used to be as soon as the professional foreign exchange of the Pacific Island, Christmas Island, which used to be as soon as at quite a lot of cases a territory of Great Britain and Singapore.
- The Island was a part of Australia and adopted the country’s foreign exchange in 1958 in a process known as dollarization.
- The island’s establish is derived from the fact that it used to be as soon as discovered on Christmas Day 1643 by means of a British sea captain.
- Christmas Island has merely over 2,000 voters with an monetary device consistent with tourism and phosphate mining.
Understanding the Christmas Island Dollar
The Christmas Island Dollar is now an old-fashioned foreign exchange. As such, it is not in transfer or in use. The island began using the Australian pound as its foreign exchange when Australia purchased the territory in 1958. In 1966, Australia modified the pound with the Australian dollar as its professional national foreign exchange.
Britain annexed Christmas Island in 1888. After International War II, Christmas Island was a jurisdiction of Singapore, until Singapore transferred the island to Australia in October 1958 for a value of $20 million to cover the loss of earnings from the island’s phosphate supply.
The Christmas Island flag is divided diagonally; the upper triangle is green with a yellow Golden Bosun Rooster; the lower triangle is blue with the Southern Move constellation, representing Australia; centered yellow disk holds a green map of the island.
Provide: CIA International Factbook, 2007
Christmas Island had an estimated population of merely over 2,200 folks, maximum regularly inhabiting the north aspect of the island. A significant portion of the island’s population comes from Chinese language language ancestry, followed by means of Australian and Malay ancestry.
The island’s monetary device consists necessarily of tourism and a phosphate extraction trade that is dwindling.
More than two-thirds of the island is a national park. The island moreover houses an Australian immigration detention center.
Christmas Island Dollar vs. Australian Dollar (AUD)
The criminal mild on Christmas Island is the Australian dollar. It’s been as such as it was an Australian territory. The Australian dollar is made up of 100 cents and is represented with the brand $, A$, or AU$. It is usually the professional foreign exchange for the Pacific islands of Nauru, Tuvalu and Kiribati, along with Norfolk Island.
Australia is the world’s 13th-largest monetary device. Its monetary and political balance makes its foreign exchange extraordinarily traded, for the reason that Australian dollar is the fifth most traded foreign exchange in the world.
The switch from the local foreign exchange to the AUD is called dollarization or foreign exchange substitution. Christmas Island is likely one of the spaces that professional this process. Others include Zimbabwe, Ecuador, and El Salvador.
Dollarization typically occurs in rising world places with risky economies or inclined central governments. The process provides spaces with monetary balance, attracts house and out of the country investment, and has the ability to counter high inflation. Dollarization can each be a partial or whole process. When partial dollarization takes place, a portion of a country’s belongings is held throughout the adopted foreign currencies.
