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Personal Interest Rates and the Aussie Dollar.

In Money Supply on March 29, 2011 by CQCA

The Australian economy is known for high interest rates and commodities, so its currency is looked upon favorably. However, in terms of long-term savings, the Australian Dollar has essentially the same poor performance as the U.S. Dollar.

If AUD $1.00 was invested continuously in a one-year certificate of deposit between 1981 and 2010, it would be worth approximately $8.69 at the end of the period. The Australian broad money supply increased from AUD $106 billion in 1981 to $1,336.6 billion at the end of 2010. On an indexed basis, this is an increase from 1.00 in 1981 to 12.60 in 2010.

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