Turnover in the Australian dollar is sixth amongst the world currencies and there is ample liquidity in both currency and asset markets. The relevant derivative contracts have grown, and so provided hedging opportunities. As we point out in a forthcoming Bulletin article, Australia as a whole has for some time had a long foreign currency position.
That is, we have more foreign-currency-denominated assets than foreign-currencydenominated liabilities, a far cry from our position in the early post-float period. I want to conclude now by briefly revisiting the subject of why economies, including our own, have exhibited more stability than in earlier periods.