Christmas Island Dollar

DEFINITION of 'Christmas Island Dollar'

The former currency of Christmas Island, an Australian island in the Indian Ocean that was discovered on December 25, 1643. Today, the Christmas Island dollar is obsolete, with Christmas Island now using the Australian dollar. This switch from the use of a local currency to the use of another jurisdiction's currency is called dollarization and is a common phenomenon throughout the world. Dollarization can help a country obtain currency stability and encourage both domestic and foreign investment. The Australian dollar is one of the most frequently traded currencies in the foreign exchange market.

BREAKING DOWN 'Christmas Island Dollar'

In 2010, Christmas Island had an estimated population of less than 1,500 people. Most of the island is a national park. English is the official language, although the majority of the population is Chinese. The island's economy consists of tourism and a dwindling phosphate extraction industry. Other places that use the Australian dollar include the Pacific islands of Nauru, Tuvalu and Kiribati as well as Norfolk Island.

RELATED TERMS
  1. AUD (Australian Dollar)

    The currency abbreviation for the Australian dollar (AUD), the ...
  2. KYD (Cayman Islands Dollar)

    The currency abbreviation or currency symbol for the Cayman Islands ...
  3. KYD

    The currency abbreviation or currency symbol for the Cayman Islands ...
  4. SBD (Solomon Islands Dollar)

    The currency abbreviation for the Solomon Islands dollar (SBD), ...
  5. Aussie

    Slang term that is used to refer to the Australian dollar.
  6. Form 8689: Allocation Of Individual ...

    A tax form distributed by the Internal Revenue Service (IRS) ...
Related Articles
  1. Managing Wealth

    Find the Private Island of Your Dreams

    The perks, the problems and the pleasures of owning your own little piece of paradise.
  2. Managing Wealth

    6 Wealthy People Who Owned Private Islands

    Larry Ellison and Richard Branson are just two of the people who bought their own private islands.
  3. Retirement

    Find the Right Bahamas Island for Your Retirement

    There may be no “best” Bahamas island, but there may be a best island for your retirement. Here are some top spots to consider.
  4. Trading

    Countries That Use The U.S. Dollar

    Here are the territories and countries that use the U.S. dollar as their official or quasi official currency.
  5. Personal Finance

    Beach House Investing: Best Beach Towns in Long Island, New York

    Learn about the three beach house locations on Long Island that investors should consider for beach house investing projects and key facts.
  6. Markets

    3 Characteristics of Caribbean Economies

    An overview of the common characteristics of Caribbean economies.
  7. Insights

    The Profits of Paradise: The Top 4 Economies of the Caribbean

    A look at some of the most dynamic economies in the Caribbean region.
  8. Markets

    Caribbean Currencies: An Overview

    As many as ten currencies are used among the islands of the Caribbean. A fixed exchange rate regime is the most common exchange regime found in the region; however, a few of the larger islands ...
  9. Retirement

    Retire in the Caribbean: Top Islands For Expats

    Palm trees, turquoise waters, white-sand beaches – but which Caribbean island is best for retirement? Here's what we learned.
  10. Personal Finance

    Traveling to Hawaii on a Budget

    Learn a number of easy ways to save big on airfare, car rental, lodging, meals and entertainment when vacationing on the Hawaiian islands.
RELATED FAQS
  1. Why is the Cayman Islands considered a tax haven?

    Find out why the Cayman Islands is considered a tax haven and why this location is so popular among those looking to reduce ... Read Answer >>
  2. Where does the name "Wall Street" come from?

    As with many of the famous streets and roads in the world, Wall Street's origins have historical significance. Its name is ... Read Answer >>
  3. Why is Jersey considered a tax haven? (C, CS)

    Learn about the tax haven status of Jersey, an autonomous nation located in the Channel Islands that is subject to the British ... Read Answer >>
  4. Are there significant seasonal patterns in the electronics sector?

    Examine the consumer electronics sector and learn what typical seasonal sales patterns can be identified for this important ... Read Answer >>
  5. What is foreign exchange?

    Foreign exchange, or Forex, is the conversion of one country's currency into that of another. In a free economy, a country's ... Read Answer >>
  6. How can I invest in a foreign exchange market?

    The foreign exchange market, also called the currency market or forex (FX), is the world's largest financial market, accounting ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center