This paper was presented at the SEACEN Seminar on Foreign Exchange Liberalization Expe- riences in the SEACEN Countries held in Seoul and hosted by The Bank of Korea from May 30 – June 1 1994. Australias floating exchange rate system is the topic of this paper. It begins by describing the background to the float and then reviews the experience to date. Particular emphasis is given to how and why the Reserve Bank intervenes in the foreign exchange market.
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