03/11/2021
New Zealand’s Currency: Overview and History of the NZD
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We do our very best to give you the most accurate journalistic information, but we can’t guarantee to be perfect. You use the information at your own risk, for more details read ‘how our site works’. Because exchange rates change so frequently, and every provider offers different rates it’s hard to say the cheapest way and place to exchange currency.
The foreign exchange designation for the New Zealand dollar is NZD. The New Zealand dollar and Australian dollar exchange rate – AUD/NZD – is one of the most widely traded cross pairs in the forex market. In fact, xcritical introduction during the 1800s, New Zealand used its coins and banknotes before British currency was even 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.
Until that point, both British and Australian coins circulated in New Zealand, and continued to do so until 1897. The Pound banknotes were produced by the six different trading banks until 1924, when a single uniform design was implemented. A decade later, the Reserve Bank of fibo group review New Zealand was established.
After a three-month public submission period that ended on 4 February 2005, the Reserve Bank 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. In other states, the program is sponsored by Community Federal Savings Bank, to which we’re a service provider. New Zealand banks are open weekdays 9.30am-4.30pm and sometimes on a weekend. Most will work with an international credit or debit card as long as your card has a four-digit pin code.
This article has been reviewed and approved by Robin, who is the co-founder of NZ Pocket Guide. With more than 15 years of experience in the New Zealand tourism industry, Robin has co-founded three influential tourism businesses and five additional travel guides for South Pacific nations. He is an expert in New Zealand travel and has tested over 600 activities and 300+ accommodations across the country. New Zealanders have a culture of using a credit or debit card for most purchases except in small instances like paying for bus travel or buying from a market.
Other factors affecting the NZD are dairy prices and tourism numbers. New Zealand is one of the world’s biggest exporters of whole milk powder. 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 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.
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. We’ve used Auckland as our example but you may find the prices in your destination are different depending on location. New Zealand is a super popular tourist destination from Australia, with a great range of activities and options no matter what you’re planning on doing. New Zealand Dollars notes are frequently used in $5, $10, $20, $50 and $100 denominations.
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In the year 1967 alone, the Bank printed 27 million new banknotes and 165 million new coins. Altogether it has five coins and five banknotes with the smallest being the 10-cent coin; smaller denominations have been discontinued due to inflation and production costs. In 1967, notes were introduced in denominations of $1, $2, $5, $10, $20 and $100, with all except the $5 replacing their pound predecessors. $1 and $2 notes were discontinued in 1991 after being replaced with coins. We compare currency exchange and money transfer services in over 200 countries worldwide.
Paying by card in New Zealand is widely known as EFTPOS, which stands for Electronic Funds Transfer at Point of Sale. Most major credit cards can be used in New Zealand that are Visa or MasterCard, but we recommend carrying a little bit of cash on you just in case. The unit of currency in New Zealand is the New Zealand Dollar, often seen written as “NZD” or “NZ$”. This guide to New Zealand currency will go through how money is commonly using in New Zealand, from currency values to banking in New Zealand to the Goods and Services Tax. A floating currency is one with value that is permitted to change as it’s compared to other currencies.
Australia ranks as New Zealand’s second-largest trading partner behind China. The neighboring country reports 6.2% of New Zealand imports in 2023. The performance of Australia’s economy has a significant impact on the New Zealand dollar as a result.
The strength of a currency tends to fluctuate so the fxcm broker 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. Other economic factors, such as growth rate, GDP, unemployment, and inflation are strong and, therefore, lead to a strong currency. Since 1999, the New Zealand government has produced polymer or plastic versions of the New Zealand dollar, which has made the note more secure against counterfeiting. In addition, the new polymer composition has increased the longevity of the note.
