Replies

DB,

See

http://au.biz.yahoo.com/forex-education/australian-dollar.html

and

http://www.investopedia.com/articles/forex/06/CommodityCurrencies.asp

and

http://www.traderslog.com/commodities-forex.htm

Technically, you can’t be part of the IMF without fiat money, but the Aussies, as I understand it, don’t link their currency, but back their bonds, with commodities, and thus get around the IMF regulations.

My brother is a FOREX trader and has been getting 5-10% return a month playing the commodity currencies (Aus, NZ and Canada) against the dollar. The problem with Canada is that their economy is too tightly tied to ours to allow too much movement. I do remember just a few years ago, though, getting almost $1.50 CA for one greenback. We are now close to even.