The development could change the perception of the Australian dollar from that of a volatile commodity currency to something more akin to a reserve currency.
For four decades Australia has run a current account deficit – it has relied on capital inflows from abroad to fund its standard of living.
But Australia is on the verge of a profound moment that will compel analysts, investors and policymakers to rethink their view of this open economy and its free floating currency.
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Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney. Connect with Jonathan on Twitter. Email Jonathan at jonathan.shapiro@afr.com
