Over the past decade, the share of broad money represented by term and other bank deposits has increased in importance at the expense of holdings of current deposits and other borrowings from the private sector. How Is Money ‘Created’? Australia's banknotes are produced by the Reserve Bank of Australia and account for most (about 95 per cent) of the value of Australian currency.
The rest is accounted for by coins produced by the Royal Australian Mint. Banks purchase banknotes from the Reserve Bank as required to meet demand from their customers and, in turn, the Reserve Bank ensures that it has sufficient banknotes on hand to meet that demand. Previous research by the Reserve Bank points to a number of drivers of demand for banknotes.