From 1985 forward, the kiwi was allowed to float in the foreign exchange market freely. However, New Zealand’s central bank occasionally intervenes in the forex market, selling large quantities of kiwi dollars in order to prevent the currency from increasing further in value. It is a measure frequently undertaken by a country’s avatrade review central bank in order to keep its export products attractively priced to foreign buyers. The New Zealand dollar is colloquially referred to as the “kiwi,” a flightless bird native to New Zealand that appears on the country’s $1 coin. Although sometimes denoted as NZ$, the kiwi dollar is more commonly shown with a simple $ sign.

1. 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.
2. The strength of a currency tends to fluctuate so the strength of the NZD may not always be so strong.
3. In fact, during the 1800s, New Zealand used its coins and banknotes before British currency was even legal currency.
4. The foreign exchange designation for the New Zealand dollar is NZD.
5. New Zealand’s currency is the dollar, more affectionately known as the kiwi.

In 1934, the Reserve Bank of New Zealand was established, becoming the only supplier of banknotes. The original notes had a variety of designs, including that of a kiwi, the nation’s Coat of Arms, Maori King Tawhiao, and Fiordland’s Mitre Peak. The NZD is affectionately referred to as the ‘Kiwi,’ in honor of a flightless bird called a kiwi, which is pictured on one side of the country’s $1 coin. Live tracking and notifications + flexible delivery and payment options.

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. 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. The obverse side of each coin is imprinted with an image of Queen Elizabeth II. New Zealand was first a colony and then a Dominion within the British Empire before obtaining all but full independence in 1947.

Top currency pairings for New Zealand dollar

Check live rates, send money securely, set rate alerts, receive notifications and more. These are the average exchange rates of these two currencies for the last 30 and 90 days. Our currency rankings show that the most popular US Dollar exchange rate is the USD to USD rate. The NZD currency has a long history of colorful and vibrant money and, since its first issuing, has changed its printed design several times. The New Zealand dollar (NZD) is the official currency of New Zealand.

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 New Zealand was established. The original New Zealand dollar banknotes all featured portraits of Queen Elizabeth. Still, those were replaced on all but the $20 notes in later currency series by portraits of noteworthy figures in New Zealand’s history, such as Sir Edmund Hillary and Kate Sheppard, a key figure in the women’s suffrage movement.

New Zealand Dollar’s Relationship With Australia

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. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. This information is made available for informational purposes only. It is not a solicitation or a recommendation to trade derivatives contracts or securities and should not be construed or interpreted as financial advice. Any examples given are provided for illustrative purposes only and no representation is being made that any person will, or is likely to, achieve profits or losses similar to those examples.

How to convert New Zealand dollars to Canadian dollars

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. 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. 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.

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. Other economic factors, such as growth rate, GDP, unemployment, and inflation are strong and, therefore, lead to a strong currency. 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.

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Start with a free account to explore 20+ always-free courses and hundreds of finance templates and cheat sheets. Gross domestic product is a measurement of the value derived from a country’s production of goods and services over a specific period. kraken trading review Tourism accounted for about 3% of the country’s gross domestic product (GDP) in March 2022, a decrease from 5.5% before the COVID-19 pandemic. The country’s top industries include agriculture, dairy, forestry, fishing, mining, and tourism.

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. CFI is the official provider of the Commercial Banking quebex & Credit Analyst (CBCA)™ certification program, designed to transform anyone into a world-class financial analyst. Over 1.8 million professionals use CFI to learn accounting, financial analysis, modeling and more.