New Zealand currency has had a long history of over 160 years. In fact, during the 1800s, New Zealand used its coins and banknotes before British currency was even https://www.forex-world.net/ legal currency. However, nothing was made official until 1933, when New Zealand issued their first official coins, based on the British pound, shilling, and pence.
In 1971 the US devalued its dollar relative to gold, leading New Zealand on 23 December to peg its dollar at US$1.216 with a 4.5% fluctuation range, keeping the same gold value. From 9 July 1973 to 4 March 1985 the dollar’s value was determined from a trade-weighted basket of currencies. The strength of a currency tends to fluctuate so the strength of the NZD may not always be so strong. However, overall, NZD is considered a stable currency due to the strength of the New Zealand economy and its outlook. Tourism is a strong economic driving force for New Zealand, so when tourism is doing well in the country, the currency will tend to be stronger.
The idea of decimalization was first raised in 1933, but was not put into place until 1967, when the New Zealand Dollar replaced the New Zealand Pound. There was much public discussion over what the new currency would be called, with ideas such as ‘kiwi’ and ‘zeal’ being proposed, but in the end, the term ‘dollar’ was chosen. The New Zealand Dollar was initially pegged to the US Dollar at a rate of 1.62 USD to 1 NZD. The peg rate changed multiple times until 1985, when the currency began to freely float in the market. In 1979, a new design for the New Zealand Dollar was released in an attempt to modernize, with the new bills being made of polymer. Since that year, there have been no coins under the value of five cents and the value of cash transactions are rounded.
Wise gives you the real, mid-market, exchange rate, so you can make huge savings on your international money transfers. Banks and traditional providers often have extra costs, which they pass to you by marking up the exchange rate. Our smart tech means we’re more efficient – which means you get a great rate. They add hidden markups to their exchange rates – charging you more without your knowledge. A new series of notes, known as Series 5 was introduced in 1992.
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It took another 30 years before the Reserve Bank replaced the currency of pounds, shillings, and pence with actual dollars and cents. In the year 1967 alone, the Bank printed 27 million new banknotes and 165 million new coins. Decimalization of the NZD (division into 100 cents) took place in 1967 when the New Zealand dollar replaced the New Zealand pound at a rate of two dollars to one pound.
In other states, the program is sponsored by Community Federal Savings Bank, to which we’re a service provider. Each banknote and coin of New Zealand’s currency looks different. The currency usually has a bird on one side of a banknote or coin as well as an important historical figure of New Zealand. It is estimated that the polymer note lasts four times longer than regular linen or paper notes.
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During the turbulence in global financial markets during mid to late 2008, the cumulative net long positions held by Japanese margin traders in the NZD fell by nearly 90%. When the Fed intervenes in open market activities to make the U.S. dollar stronger, for example, the value of the NZD/USD cross could decline, due to a strengthening of the U.S. dollar when compared to the New Zealand dollar. NZD/USD is affected by factors that influence the value of the New Zealand dollar and/or the U.S. dollar in https://www.currency-trading.org/ relation to each other and other currencies. For this reason, the interest rate differential between the Reserve Bank of New Zealand (RBNZ) and the Federal Reserve (Fed) will affect the value of these currencies when compared to each other. The first coins had pictures of the native birds of New Zealand on the “tails” side, a tradition that has continued, with the British monarch on the head side. The New Zealand dollar also circulates in the Cook Islands, Niue, Tokelau, and the Pitcairn Islands.
This means that if milk prices are on the rise the New Zealand economy is likely to be doing well, which will push up the currency. The New Zealand dollar is considered a carry-trade currency in that it is relatively high-yielding so investors will often buy the NZD and fund it with a lower-yielding currency such as the Japanese yen or the Swiss franc. The Xe Rate Alerts will let you know when the rate you need is triggered on your selected currency pairs.
- Our currency rankings show that the most popular US Dollar exchange rate is the USD to USD rate.
- In fact, during the 1800s, New Zealand used its coins and banknotes before British currency was even legal currency.
- Other economic factors, such as growth rate, GDP, unemployment, and inflation are strong and, therefore, lead to a strong currency.
- In 1967, notes were introduced in denominations of $1, $2, $5, $10, $20 and $100, with all except the $5 replacing their pound predecessors.
Interestingly, the polymer note can go through a washing machine without suffering any material damage. In 2016, the currency had its most recent update, with even more bright colors and updated security features. These percentages show how much the exchange rate has fluctuated over the last 30 and 90-day periods. These are the lowest points the exchange rate has been at in the last 30 and 90-day periods. These are the highest points the exchange rate has been at in the last 30 and 90-day periods. The New Zealand dollar contributes greatly to the total global exchange market—far in excess of New Zealand’s relative share of population or global GDP.
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In 1992, the images of Queen Elizabeth on all of the banknotes were altered to reflect prominent citizens of New Zealand such as Edmund Hillary, Kate Sheppard, Apirana Ngata, and Ernest Rutherford, along with local birds and plants on the backs of the notes. Check live rates, send money securely, set rate alerts, receive notifications and more. Our currency rankings show that the most popular US Dollar exchange rate is the USD to USD rate. These are the average exchange rates of these two currencies for the last 30 and 90 days. In 1934, the Reserve Bank of New Zealand was established, becoming the only supplier of banknotes.
On 11 November 2004 the Reserve Bank announced that it proposed to take the 5c coin out of circulation and to make the 50c, 20c and 10c coins smaller and use plated steel to make them lighter. After a three-month public submission period that ended on 4 February 2005, the Reserve Bank https://www.investorynews.com/ announced on 31 March that it would go ahead with the proposed changes. The changeover period started on 31 July 2006, with the old coins usable until 31 October 2006.[19] The old 50c, 20c, 10c and 5c pieces are now no longer legal tender, but are still redeemable at the Reserve Bank.
Initially pegged to the United States dollar, NZD went through a series of changes in the fixed exchange rate until March of 1985, when the currency was allowed to float freely. On the introduction of the dollar, coins came in denominations of 1c, 2c, 5c, 10c, 20c, and 50c. The obverse designs of all the coins featured Arnold Machin’s portrait of Queen Elizabeth II, with the legend ELIZABETH II NEW ZEALAND [date]. The reverse sides of coins introduced in 1967 did not follow the designs that were originally intended for them. Those modern art and sculpture themed designs were leaked to a newspaper and met a very negative public reaction. The final releases were given more conservative designs in line with public expectations.
It is often informally known as the “Kiwi (dollar)” and is divided into 100 cents. In 1986, New Zealand adopted Raphael Maklouf’s new portrait of the Queen. The 1c and 2c coins were last minted for circulation in 1987, with collector coins being made for 1988.
Our currency rankings show that the most popular New Zealand Dollar exchange rate is the NZD to USD rate. The currency code for Dollars is NZD, and the currency symbol is $. Below, you’ll find New Zealand Dollar rates and a currency converter. The New Zealand dollar (NZD) is the official currency of New Zealand. NZD is made up of 100 cents and is often represented by the symbol $ or NZ$ to set it apart from other currencies based on dollars. NZD also sees use in the Cook Islands, Niue, Tokelau, and the Pitcairn Islands.