2 Dollars – Australia
Australia
Context
Years: 1988–2018
Issuer: Australia 
Ruler: Elizabeth II
Currency:
(since 1966)
Total mintage: 303,513,042
Material
References
KM: #Click to copy to clipboard101
Numista: #1568
Value
Exchange value: 2 AUD = $1.42
Inflation-adjusted value: 6.00 AUD
Obverse
Description:
Queen Elizabeth III facing right in the King George IV State Diadem.
Inscription:
ELIZABETH II
AUSTRALIA 1988
RDM
AUSTRALIA 1988
RDM
Script: Latin
Designer: Raphael David Maklouf
Reverse
Description:
Aboriginal man left, Southern Cross above, denomination right, Grass Tree far right, designer initials below.
Inscription:
2
DOLLARS
HH
DOLLARS
HH
Script: Latin
Designer: Horst Hahne
Edge
Smooth with 4 short reeded segments (5 grooves each)
Mints
| Name | Mark |
|---|---|
| Royal Australian Mint | — |
Mintings
| Year | Mint Mark | Mintage | Quality | Collection |
|---|---|---|---|---|
| 1988 | — | — | BU | |
| 1988 | — | 160,852,000 | ||
| 1988 | — | 101,518 | Proof | |
| 1989 | — | 150,602 | BU | |
| 1989 | — | 31,637,000 | ||
| 1989 | — | 67,618 | Proof | |
| 1990 | — | 51,015 | Proof | |
| 1990 | — | 103,766 | BU | |
| 1990 | — | 10,338,500 | ||
| 1991 | — | 200 | BU | |
| 1991 | — | 1,000 | Proof | |
| 1992 | — | 56,367 | Proof | |
| 1992 | — | 118,528 | BU | |
| 1992 | — | 15,504,000 | ||
| 1993 | — | 27,000 | BU | |
| 1993 | — | 4,873,500 | ||
| 1993 | — | 40,255 | Proof | |
| 1994 | — | 39,958 | BU | |
| 1994 | — | 39,004 | Proof | |
| 1994 | — | 22,143,000 | ||
| 1995 | — | 36,190 | BU | |
| 1995 | — | 15,528,500 | ||
| 1995 | — | 6,704 | Proof | |
| 1996 | — | 25,727 | BU | |
| 1996 | — | 13,909,000 | ||
| 1996 | — | 3,985 | Proof | |
| 1997 | — | 3,617 | Proof | |
| 1997 | — | 27,421 | BU | |
| 1997 | — | 19,039,000 | ||
| 1998 | — | 31,810 | BU | |
| 1998 | — | 8,719,000 | ||
| 1998 | — | 5,269 | Proof | |
| 2018 | — | 1,988 | Proof | |
| 2018 | — | 30,000 | BU |
Historical background
In 1988, Australia's currency situation was characterised by a managed float of the Australian dollar (AUD) operating within a broader context of economic liberalisation and external pressures. Just three years prior, in December 1983, the Hawke-Keating Labor government had deregulated the financial system and floated the dollar, abandoning a fixed exchange rate. By 1988, the currency was therefore valued by market forces of supply and demand, with the Reserve Bank of Australia (RBA) intervening only to smooth out excessive volatility or address disorderly market conditions. This new regime was still being tested, with the dollar's value heavily influenced by commodity prices, particularly for key exports like coal and wool, and shifting interest rate differentials with major trading partners.
The year saw the AUD under significant downward pressure, depreciating notably against the US dollar and other major currencies. This weakness was driven by a widening current account deficit, which ballooned to around 4% of GDP, and a high level of foreign debt accumulated during the 1980s. Market sentiment was concerned about Australia's "twin deficits" (both fiscal and current account), leading to periodic sell-offs of the currency. In response, the RBA maintained a tight monetary policy, with high interest rates throughout 1988 (the cash rate reached 15.5% in early 1989) to curb inflationary pressures from strong domestic demand and to support the currency by attracting foreign capital.
Overall, the currency situation in 1988 reflected a challenging transition for an economy opening itself to global financial markets. The floating dollar acted as a shock absorber, but its depreciation highlighted underlying structural issues and exposed the economy to the discipline of international investors. This environment set the stage for the "recession we had to have" in the early 1990s, as policymakers continued to grapple with balancing external imbalances, inflation, and growth in the new financial landscape they had created.
The year saw the AUD under significant downward pressure, depreciating notably against the US dollar and other major currencies. This weakness was driven by a widening current account deficit, which ballooned to around 4% of GDP, and a high level of foreign debt accumulated during the 1980s. Market sentiment was concerned about Australia's "twin deficits" (both fiscal and current account), leading to periodic sell-offs of the currency. In response, the RBA maintained a tight monetary policy, with high interest rates throughout 1988 (the cash rate reached 15.5% in early 1989) to curb inflationary pressures from strong domestic demand and to support the currency by attracting foreign capital.
Overall, the currency situation in 1988 reflected a challenging transition for an economy opening itself to global financial markets. The floating dollar acted as a shock absorber, but its depreciation highlighted underlying structural issues and exposed the economy to the discipline of international investors. This environment set the stage for the "recession we had to have" in the early 1990s, as policymakers continued to grapple with balancing external imbalances, inflation, and growth in the new financial landscape they had created.
🌱 Very Common