Christmas Island Dollar

What Was the Christmas Island Dollar?

The Christmas Island Dollar was formerly the official currency of Christmas Island, a small Australian island situated in the Indian Ocean.

The main person to locate the island was a British commander named Captain William Mynors, who cruised past it on December 25, 1643; thus the name "Christmas" Island.

Figuring out the Christmas Island Dollar

The Christmas Island Dollar is presently obsolete, as Christmas Island has adopted the Australian dollar (AUD) as its official currency in 1958.

England attached Christmas Island in 1888. After World War II, Christmas Island turned into a jurisdiction of Singapore, until Singapore moved the island to Australia in October 1958 for a payment of $20 million to supply cover the loss of earnings from the island's phosphate.

Starting around 2020, Christmas Island had an estimated population of somewhat less than 2,000 individuals, for the most part occupying the north side of the island. A critical portion of the island's population comes from Chinese family line, trailed by Australian and Malay parentage. Presently, more than 66% of the island is a national park. The island likewise houses an Australian migration confinement center.

The island's economy comprises fundamentally of the travel industry and a phosphate extraction industry that is diminishing.

Change from the Christmas Island dollar to the Australian Dollar

The legal tender utilized on Christmas Island is presently the Australian dollar (AUD) which is the official currency of the Commonwealth of Australia. It is comprised of 100 pennies and is addressed with the symbol $, A$ or AU$.

The Australian dollar is additionally the official currency for the Pacific islands of Nauru, Tuvalu and Kiribati as well as Norfolk Island. Australia is the world's thirteenth biggest economy, and its economic and political stability has made its currency highly traded, as the Australian dollar is the fifth most traded currency in the world.

This switch from the utilization of a nearby currency to the utilization of another jurisdiction's currency is called dollarization or currency substitution and is a common phenomenon.

Dissimilar to the case of Christmas Island which turned into an Australian region, dollarization sometimes likewise happens in agricultural nations that have unsteady economies or weak central legislatures. The primary benefits offered by dollarization incorporate economic stability, drawing in domestic and foreign investment, and the ability to counter high inflation. The course of dollarization can either be partial or full. At the point when partial dollarization happens, a portion of a country's assets are held in the adopted foreign currency. Different countries that have gone through dollarization incorporate Zimbabwe, Ecuador and El Salvador.

Highlights

• The Christmas Island dollar was the official currency of the Pacific Island, Christmas Island, which was at different times a domain of Great Britain and Singapore.
• The island has around 2,000 occupants right now, with an economy in view of the travel industry and phosphate mining.
• In 1958 the Island turned into a part of Australia and the AUD turned into its official currency.