New Zealand Dollar ($, NZD)
Published: 01/04/2016 - Updated: 16/06/2016 - Category: Currency
The New Zealand Dollar, also referred to as the “Kiwi”, is the official legal tender of the Realm of New Zealand and its territories including the Cook Islands, Niue, Pitcairn Island and Toelau. The Kiwi is one of the top ten most traded currencies in the world with two percent of the foreign exchange market.
The New Zealand Dollar as a Reserve Currency
A strong valuation ratio has recently allowed the Kiwi to emerge as one of the world’s most valued currencies. This rise has come despite a relatively low national population and GDP.
The New Zealand Dollar has experienced a number of attempts to artificially influence its value. For example, in 2007 the Reserve Bank of New Zealand sold a large number of its dollars in exchange for $9 billion USD. While it is believed that the Reserve Bank wished to devalue the Kiwi, foreign investment in New Zealand’s economy actually caused the value of the Kiwi to rise. This trend demonstrates that the Kiwi is both popular on an international stage and a stable investment for those interested in foreign currency exchange.
History of the New Zealand Dollar
The New Zealand Pound was the official currency of New Zealand from 1840 to 1967. It was at this time that the national currency transitioned to the New Zealand Dollar. Attempts to leave the Pound began as early as the 1930s but came to a head in 1957 when a committee was established to investigate a move to the decimal currency system.
The committee came to the decision to transition from the Pound in 1963 and the government of New Zealand passed the Decimal Currency Act in 1964. After three years, the new Kiwi Dollar was released to the public in the form of bank notes and coins.
Bank Notes & Coins
There are 5 primary New Zealand coins ( $2, $1, 50c, 20c, 10c) in active circulation and some commemorative and collector coins in circulation but with limitations pr specified restrictions applied.
There are a total of 5 primary New Zealand Dollar bank notes ($100, $50, $20, $10, $5) available in circulation. In 1991, the New Zealand $1 and $2 notes were discountinued and replaced with coins.
Five Dollars - $5
Ten Dollars - $10
Twenty, Fifty and One Hundered Dollar notes - May 2016 Release