June 2022



Funds


Picture: Reserve Financial institution of Australia




What Can You Do With Your Broken Banknotes?



Amanda Burton and
Henry Winata


By the Reserve Financial institution’s broken banknote claims service, members of the general public can ask for his or her
broken banknotes to be assessed and the worth redeemed.

Eradicating poor-quality banknotes additionally helps the
Financial institution’s goal of guaranteeing that the general public has confidence in Australian banknotes as a method of cost and a
safe retailer of wealth. This text offers an summary of the service, its key customers and the circumstances
during which claims are lodged. Whereas the worth of nearly all of claims is comparatively low, claims containing
banknotes broken in storage could be important, reflecting the position of money as a safe retailer of wealth.

banknotes, forex, cash

Funds


Picture: Reserve Financial institution of Australia




Latest Developments in Banknote Counterfeiting



Leigh Mann and
Siddarth Roche


Counterfeiting of Australian banknotes is approaching its lowest stage in a decade. A number of elements are
taking part in a task on this decline,

together with fewer transactions being made with money, COVID-19-induced lockdowns, the rollout of a brand new banknote sequence with upgraded
safety features, and legislation enforcement persevering with to interrupt counterfeiting operations. This text
quantifies the impact of a few of these elements, whereas exploring the broader developments in banknote
counterfeiting.

banknotes, counterfeit, forex, cash

Australian Economic system


Picture: skynesher – Getty Photographs




Job Mobility in Australia in the course of the COVID-19 Pandemic



Susan Black and
Emma Chow


The COVID-19 pandemic has led to massive disruptions to the Australian labour
market. Initially, employees have been much less more likely to change jobs due to the unsure financial setting, the
lower in marketed jobs and the JobKeeper program that helped employees stay hooked up to their employers.

Extra just lately, job mobility has elevated as employees have caught up on deliberate job adjustments or been inspired
by the sturdy labour market to vary jobs, significantly in high-skilled roles experiencing sturdy labour
demand. This text evaluations developments in job mobility in Australia by way of the pandemic, and compares
these outcomes to different superior economies. It additionally examines the potential implications for wages; a excessive
charge of job mobility tends to be related to larger wages development in a good labour market, as employers
in sectors with excessive demand for labour compete for brand spanking new workers or increase wages to retain workers.

employment, labour market, pandemic, wages

Australian Economic system
Visitor article


Picture: Jorge de Araujo




First Nations Companies: Progress, Challenges and Alternatives



Michelle Evans and
Cain Polidano


Australia’s First Nations enterprise sector is rising at a tempo of round 4 per cent per yr,
fuelled by rising demand. Nonetheless, many budding First Nations entrepreneurs nonetheless face substantial obstacles
to establishing a profitable enterprise.

This text discusses the necessity to develop belief for efficient coverage
environments that help First Nations companies, and describes how ongoing challenges of entry to
monetary, social and symbolic capital proceed to check First Nations enterprise homeowners. Regardless of this, there
are alternatives for First Nations companies within the types of Indigenous preferential procurement insurance policies,
and First Nations-specific enterprise improvement applications in addition to monetary services and products. It’s
not but clear how efficient the coverage setting is in addressing entry and discrimination challenges, nor
how widespread the advantages are to First Nations companies. As such, the article concludes by discussing the
position of knowledge improvement for accountability.

enterprise, information, First Nations, start-ups

Monetary Stability


Picture: Viaframe – Getty Photographs




Family Liquidity Buffers and Monetary Stress



Lydia Wang


The ratio of family liquid property to family revenue in Australia has elevated considerably over current
many years, at each the combination and particular person family ranges.

The rise in buffers has been most
pronounced for households with mortgage debt and amongst indebted households – with these with probably the most
debt usually holding the best liquidity buffers. That is necessary from a monetary stability
perspective as liquidity buffers permit households to clean their spending and preserve their debt cost
obligations within the occasion of adversarial shocks to their money flows; as such, they’re a key think about lowering
family monetary stress. This text considers these developments and finds that, to the extent that rising
liquidity buffers have elevated family monetary resilience, the dangers related to excessive and rising
family indebtedness are unlikely to be as nice as urged by specializing in gross debt-to-income ratios
alone.

debt, monetary stability, households, mortgages

International Economic system


Picture: Yuichiro Chino – Getty Photographs




An Worldwide Perspective on Financial Coverage Implementation Programs



Nick Baker and
Sally Rafter


In response to the COVID-19 pandemic and constructing on insurance policies launched throughout
the worldwide monetary disaster, central banks in superior economies deployed steadiness sheet insurance policies to help
their economies and deal with disruptions to the sleek functioning of monetary markets.

The introduction of
these insurance policies has modified how most of those central banks implement their major coverage device – the
coverage charge. This text describes what number of central banks transitioned from a hall system of financial
coverage implementation to a de facto flooring system. It additionally particulars the vary of implications of selecting a
flooring system. Whereas this transition might show to be non permanent for some central banks, others have signalled
that they anticipate to retain a flooring system in the long run.

rates of interest, worldwide, market operations, financial coverage, pandemic

Funds


Picture: Watchara Piriyaputtanapun – Getty Photographs




Financial institution Charges in Australia



Karl Sparks and
Rachael Fitzpatrick


This text updates earlier Reserve Financial institution analysis on financial institution charges charged to Australian households, companies
and authorities.

Since 2021, improved information on the charges charged by banks have been obtainable from the brand new
Financial and Monetary Statistics assortment, which changed the survey on banks’ charge revenue undertaken
yearly since 1997 by the Reserve Financial institution. The brand new information recommend that the general charges charged by banks declined
in 2021. This decline was broadly based mostly throughout completely different classes, though complete charges charged on loans
(excluding private lending) elevated reasonably, partly reflecting the upper quantity of lending exercise.

banking, charges, rba survey

Finance


Picture: Visible Communications – Getty Photographs




Fallbacks for BBSW Securities



Duke Cole and
Lara Pendle


The financial institution invoice swap charge (BBSW) is a crucial short-term benchmark rate of interest for Australian monetary
markets throughout numerous maturities. It’s a sturdy benchmark based mostly on a liquid market.

Nonetheless, it’s potential
that, in some unspecified time in the future sooner or later, BBSW would possibly not be sturdy. Market members have to be ready
for the likelihood that BBSW, or a minimum of some BBSW tenors, stop to be printed. To take action, members
ought to embody a ‘sturdy, cheap and honest’ fallback to a different rate of interest of their
monetary contracts. To advertise applicable use of fallbacks, the Reserve Financial institution will solely settle for securities
referencing BBSW issued after 1 December 2022 as collateral in its home market operations if these
securities embody such a fallback. The article explains this modification and the way members can put together for the
contingency of BBSW ceasing to exist.

monetary markets, rates of interest, market operations, securitisation



The graphs within the Bulletin have been generated utilizing Mathematica.

ISSN 1837-7211 (On-line)