Why is the dollar used in Australia, when Australia is one of the members of the Commonwealth?

Question

I've been wondering about this for some time now.
I asked an English guy the same question and he said he thinks it's because the Australian economy isn't as strong as the British one, so their currency is dollar, not GB pound (because dollar is also weaker than GB pound). But still, why, when Australia is a member of the Commonwealth, an ex British colony?

Answer 1

I believe it is because the word "dollar" was commonly used to refer to currency long before the monetary standards of today's nations. At some point in Australian history, Australians decided to use the word dollar to refer to their currency, although I'm not sure if Americans had any influence on why they chose the word dollar. The Australian dollar and the United States dollar are two different currencies.

Answer 2

The answer is every country has it's own economic system. The dollar is a dollar in the US and the Dollar is a Dollar in Australia. But they are different dollars. Their name may have come from the same root word, but they are not the same dollar. Just because Australia is a commonwealth country does not mean that they are the same economic system.

Answer 3

Answers above would have solved your quarry.Every country has its own currency and can keep any name including dollar like the US kept it.Term dollar was used way before US came into existence.
Check : http://www.ex.ac.uk/~RDavies/arian/dollar.html
And was not north America also a British colony who established 13 colonies there overruling native Americans.. :)

Answer 4

Australia has their "own dollar" It is not American.
It can be converted to an american dollar but they lose 30%.