| New Zealand dollar | |||||
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| ISO 4217 Code | NZD | ||||
|---|---|---|---|---|---|
| User(s) | New Zealand, Cook Islands, Niue, Pitcairn Islands, Tokelau | ||||
| Inflation | 2.6% (New Zealand only) | ||||
| Source | Reserve Bank of New Zealand, December 2006 | ||||
| Pegged by | Cook Islands dollar at par | ||||
| Subunit | |||||
| 1/100 | cent | ||||
| Symbol | $ | ||||
| cent | c | ||||
| Nickname | kiwi | ||||
| Coins | 10c, 20c, 50c, $1, $2 | ||||
| Banknotes | $5, $10, $20, $50, $100 | ||||
| Central bank | Reserve Bank of New Zealand | ||||
| Website | www.rbnz.govt.nz | ||||
The dollar (currency code NZD) is the currency of New Zealand. It also circulates in the Cook Islands (see also Cook Islands dollar), Niue, Tokelau, and the Pitcairn Islands. It is normally abbreviated with the dollar sign $, or alternatively NZ$ to distinguish it from other dollar-denominated currencies. It is often informally known as the "Kiwi (dollar)" and is divided into 100 cents. It is one of the eight most traded currencies in the world. Pitcairn Island, for island administration purposes uses these currencies: AUD, NZD, CAD, USD, GBP and the Euro. Technically speaking (and in practice) Pitcairn does not have an official currency. All other entities using the NZD do so officially, by statute.
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History
In 1967, the dollar replaced the New Zealand pound at a rate of 2 dollars = 1 pound when the country decimalised its currency. It was initially pegged to the US dollar at a rate of US$1.39 = NZ$1. This rate changed on November 21 of the same year to US$1.12 = NZ$1 after the devaluation of the British pound (see Bretton Woods system) although New Zealand devalued to a greater extent than the U.K.[1] In 1971, the U.S.A. devalued its dollar relative to gold, leading New Zealand to peg its dollar at a value of US$1.216 with a 4.5% fluctuation range on 23 December (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. Since 4 March, 1985 the dollar's value has been determined by the financial markets, and has been in the range of about 0.39–0.81 United States dollars. The dollar's most recent minimum average daily value was 0.3922 U.S. dollars on 22 November 2000, and its most recent maximum was 0.8103 U.S. dollars on 23 July 2007. Much of this medium-term variation in the exchange rate has been attributed to differences in interest rates. On June 11 2007, the Reserve Bank sold an unidentified amount of New Zealand dollars in an attempt to drive down its value. This is the first intervention in the markets by the Bank since the float in 1985. Two suspected interventions followed, however they were not as successful as the first: the first appeared to be initially effective: the dollar dropped to approximately 0.7490 U.S. dollars from near 0.7620 U.S. dollars. Within a little more than a month, however, it had risen to new post-float highs; reaching 0.8103 U.S. dollars on the 23 July 2007.
Coins
History
In 1967, coins were introduced for 1, 2, 5, 10, 20 and 50 cents. The 1 and 2 cent coins were minted in bronze, with the other denominations in cupro-nickel. The 5, 10 and 20 cents were the same size as the earlier, equivalent 6 pence, 1 shilling and 1 florin. Indeed, until 1970, the 10 cents coin bore the additional legend "One Shilling". The obverse designs of all the coins featured Arnold Machin's portrait of 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 indended 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. In 1986, New Zealand adopted Raphael Maklouf's new portrait of the Queen on all its coins. The 1 and 2 cent coins were last minted for circulation in 1987, with collector coins being made for 1988. The coins were demonetised on 1 May, 1990. The lack of 1 and 2 cent coins meant that cash transactions were normally rounded to the nearest 5 cents (10 cents as of 2006), a process known as Swedish rounding. Some larger retailers (notably one supermarket chain), in the interests of public relations, elected to round the total price down (so that $4.99 became $4.95 instead of $5.00). Alternatively, many retailers rounded all their prices to the nearest 5 cents to avoid the issue entirely — so a New Zealand shopper often encountered products for sale at prices like $4.95. In 1990, aluminium-bronze 1 and 2 dollar coins were introduced to replace existing $1 and $2 notes. In 1999, Ian Rank-Broadley's portrait of the Queen was introduced and the legend rearranged to read NEW ZEALAND ELIZABETH II. On 11 November, 2004, the Reserve Bank announced that it proposed to take the 5¢ coin out of circulation and to make the existing 50, 20 and 10 cent 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 announced on 31 March it would go ahead with the proposed changes. The changeover period started on 31 July 2006, with the old coins usable up until 31 October 2006. The older 50, 20, 10 and 5 cent pieces are now no longer legal tender, but are still redeemable at the Reserve Bank. Prior to the change over, these coins were similar, save for the legend and reverse artwork, to the corresponding coins in Australia and Fiji, which led to coins from the other currencies being accepted by most retailers.
Current Circulating Coins
| Image | Value | Diameter | Weight | Edge | Design | Issued |
|---|---|---|---|---|---|---|
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10c | 20.50 mm | 3.30 g | Plain | Features a Māori koruru, or carved head. | 2006 |
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20c | 21.75 mm | 4.00 g | "Spanish Flower", seven plain sections separated by indents. | Māori carving of Pukaki, a chief of the Ngati Whakaue iwi[2] | 2006 |
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50c | 24.75 mm | 5.00 g | Plain | James Cook's HM Bark Endeavour | 2006 |
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$1 | 23 mm | 8 g | Eight equal segments alternating between reeding and plain edge. | Kiwi and Silver Fern. | 1990 |
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$2 | 26.5 mm | 10 g | Reeded with an indented, plain channel containing ten raised dots. | Kotuku (Great Egret) | 1990 |
Banknotes
In 1967, notes were introduced by the Reserve Bank of New Zealand in denominations of 1, 2, 5, 10, 20 and 100 dollars. 50 dollar notes were added in 1983, whilst 1 and 2 dollar notes were discontinued in 1991. The first two series of notes (1967-81 and 1981-92) differed only in the portrait of the Queen featured on the obverse. The reverses all depicted native birds and plants:
| Value | Native Bird | Native Plant |
|---|---|---|
| $1 | Piwakawaka (Rhipidura fulginosa) | New Zealand clematis (Clematis paniculata) |
| $2 | Titipounamu (Acanthisitta chloris) | Mistletoe (Peraxilla tetrapetala) |
| $5 | Tui (Prosthermadera novaeseelandiae) | Kowhai (Sophora microphylla) |
| $10 | Kea (Nestor notabilis) | Mount Cook lily (Ranunculus lyallii) |
| $20 | Kereru (Hemiphaga novaeseelandiae) | Miro (Prumnopitys ferruginea) |
| $50 | Morepork (Ninox novaeseelandiae) | Pohutukawa (Metrosideros excelsa) |
| $100 | Takahe (Porphyrio mantelli) | Pekapeka (Celmisia gracilenta) |
A new series of notes was introduced from 1992. Except for the 20 dollar note, the portrait of the Queen was dropped. However, when held up to the light an image of the Queen is visible on all notes.
| Image | Value | Obverse | Reverse | |
|---|---|---|---|---|
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$5 | Sir Edmund Hillary | Hoiho |
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$10 | Kate Sheppard | Whio |
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$20 | Queen Elizabeth II of New Zealand | Karearea |
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$50 | Sir Apirana Ngata | Kōkako |
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$100 | Lord Rutherford of Nelson | Mohua |
Polymer banknotes
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A New Zealand $100 polymer banknote, replacement of the old paper notes. The beige-coloured oval and fern are actually transparent panels. |
| An old paper $100 note. |
New Zealand notes, since 1999, have been produced as plastic polymer banknotes instead of conventional paper. There was a slight controversy, but this move was mostly met with curiosity by the public. Such polymer notes have many advantages, notably a photocopy can effortlessly be distinguished from the real thing by touch, and many people have been thankful that the notes go through a washing machine with no ill effects. The notes are also difficult to tear without the aid of a cutting tool, but will tear more easily than the paper notes if a tear is started. Initial versions of the polymer $5 note had problems with the ink wearing and ageing prematurely, but this was rectified in later production runs. The Reserve Bank expects polymer notes to last at least four times as long as the old bank notes. They also have vastly improved security features and are very difficult to counterfeit.
Millennium $10 note
A special millennium version of the $10 note was issued in 2000. It had security features never used before, and like other New Zealand banknotes, it was made of polymer.
Damaged notes
The Reserve Bank accepts all New Zealand currency for payment at face value. This applies to all demonetised or withdrawn currency, however such currency need not be accepted by money changers as this is no longer legal tender. All decimal notes are legal tender except $1 and $2 notes as these have been withdrawn. Damaged notes are still usable so long as they are recognisable. In particular, the legibility of the note's serial numbers is important. The Reserve Bank website notes that as a rule of thumb if there is more than half a bank note they will pay its full value. To receive payment people have to turn in the note to the Reserve Bank in Wellington or any bank. [1]
Banknote Trivia
- The signature of ex NZ Reserve Bank Governor Don Brash still appears on some older notes (Alan Bollard's appears on newer notes).
- The letters "RBNZ" are printed along the bottom of all New Zealand banknotes. They run along specific parts of each note and are only just visible to the naked eye.
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See also
References
- ^ Global Financial Data. New Zealand Dollar (USD per NZD). Retrieved on 2007-05-21.
- ^ Tim Watkin, Figure of unity, NZ Listener, November 13-19 2004, Vol 196, No 3366. Accessed 2007-06-14.
External links
- Don's World Coin Gallery - New Zealand
- Ron Wise's World Paper Money - New Zealand Mirror site
- Tables of Modern Monetary Systems by Kurt Schuler - New Zealand Mirror site
- The Global History of Currencies - New Zealand
- Global Financial Data data series - New Zealand Dollar (USD per NZD)
- Global Financial Data currency histories table (
Microsoft Excel format) - International economics - History of the regulation surrounding the NZ$ exchange rate
- National Bank of New Zealand - View the current exchange rate graphs of NZ$/inr
- Change for the Better - Information about changes to coins from 31 July 2006.
- Reserve bank of New Zealand- Money issuing Authority
- Historical New Zealand Trading bank notes - Old extremely rare banknotes of New Zealand
- New Zealand banknote history
- Legal and economic framework
| Preceded by: New Zealand pound Reason: decimalisation Ratio: 2 dollars = 1 pound |
Currency of New Zealand July 10 1967 – |
Succeeded by: Current |
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| Coins | 1c · 2c · 5c · 10c · 20c · 50c · $1c · $2 · NZ Dollar coinage |
| Dollar Banknotes | $1 · $2 · $5 · $10 · $20 · $50 · $100 |
| Historic (before 1967) | Pound sterling (UK) · NZ Pound banknotes · NZ Pound coinage (historical) |
| Topics | New Zealand dollar · Reserve Bank of New Zealand · Swedish rounding |
