Which institution is the central bank of Australia and issues the Australian dollar?

The Reserve Bank of Australia is Australia’s central bank and issues the Australian dollar.

The bank’s responsibilities include monetary policy, financial-system stability, banknote issuance, and providing banking services to the Australian government. Its monetary-policy decisions are aimed primarily at price stability, full employment, and the economic prosperity and welfare of Australians.

The Reserve Bank was established by the Reserve Bank Act 1959, which separated central-banking functions from the Commonwealth Bank. It began operating as an independent central bank on 14 January 1960.

A common mix-up is confusing the Reserve Bank of Australia with the Commonwealth Bank of Australia. The latter is a commercial bank, while the Reserve Bank is the nation’s monetary authority. The Australian dollar is also used in several Australian external territories and nearby Pacific island states.