10 Dollars – Australia

In 2015, Australia’s currency situation was defined by a sharp and sustained depreciation of the Australian dollar (AUD), which moved from trading above parity with the US dollar in early 2013 to falling below 70 US cents by the end of 2015. This significant decline, roughly 15% in 2015 alone, was primarily driven by two interconnected factors: a dramatic plunge in global commodity prices, particularly for iron ore and coal, and a divergent monetary policy path between Australia and the United States. As a major exporter, Australia's terms of trade fell sharply with the end of the mining investment boom, reducing foreign demand for AUD. Concurrently, the US Federal Reserve moved towards tightening policy, strengthening the US dollar, while the Reserve Bank of Australia (RBA) cut its cash rate to a record low of 2.0% in May to stimulate the non-mining sectors of the economy, further widening the interest rate differential.

The RBA publicly welcomed the currency's fall, describing it as a necessary economic adjustment. Governor Glenn Stevens notably stated the dollar needed to be closer to 75 US cents, and later suggested 65 cents might be preferable, as a lower AUD acted as a shock absorber for the economy. It helped cushion the blow from falling resource prices by boosting the international competitiveness of export-oriented industries like tourism, education, and manufacturing, while also supporting domestic producers against cheaper imports. This "rebalancing act" was central to policy, aiming to facilitate a smooth transition from mining-led growth to broader-based economic drivers.

However, the depreciation also presented challenges, contributing to increased costs for imported goods and overseas travel for households. Financial markets experienced volatility, with the AUD's slide becoming a focal point for global currency traders betting on further declines. Overall, the currency situation in 2015 reflected a period of significant economic transition for Australia, where a weaker dollar was viewed not as a crisis, but as a crucial and deliberate mechanism to support growth and employment during a post-boom adjustment.