Commodity dollar

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    The term commodity dollar refers to the Australian dollar, the Canadian dollar and the New Zealand dollar.

    These dollar countries all have economies that depend heavily on commodities. The commodity dollar is also known as the “com doll” and is sometimes referred to as the commodity currency.

    While the Canadian economy is tied to the price of oil, the economies of Australia and New Zealand depend on the price of other commodities, such as gold. When the price of the respective commodity rises, the currency value in those countries will become stronger because it takes more domestic currency to purchase those materials.

    Other com doll countries include developing nations such as Burundi, Tanzania and Papua New Guinea that depend heavily on the export of their raw materials for income.

    In the forex market, commodity currencies generally refer to the Australian dollarCanadian dollarNew Zealand dollar, Norwegian krone, South African rand, Brazilian real, and the Chilean peso.