Paul Keating

As head of the Treasury, directed the policy process that culminated in the Australian dollar being floated on 12 December 1983. This move was operationalized through Treasury negotiations with the Reserve Bank, removal of the dollar's official peg and policy steps to open foreign exchange markets to market-based pricing. The float eliminated a fixed exchange rate regime and permitted the AUD to be revalued continuously by supply and demand. After the float, implemented complementary fiscal and regulatory changes that allowed capital flows and market participants to respond to global commodity prices and interest rate differentials. That restructuring directly changed how the AUD functioned as an international currency by exposing it to macroeconomic shocks and speculative flows, making Treasury policy choices a primary determinant of the currency's regime and volatility. The decision had long-term institutional consequences: it required ongoing coordination between Treasury and the Reserve Bank on intervention norms, reporting and transparency. Market participants, exporters and importers adjusted hedging and pricing practices, and the floating regime established the baseline for all subsequent monetary and fiscal actions that directly affected the AUD's value on global markets.