New Zealand Dollar (NZD)

The legal currency of the island nation of New Zealand

Updated January 30, 2021

What is the New Zealand Dollar (NZD)?

The New Zealand Dollar is the legal currency of the island nation of New Zealand. The nation is actually made up of a collection of more than 600 islands that stretch over an area of 100,000 square miles. Its two main kingdom masses are the North Islands and South Islands. New Zealand ’ sulfur currency is besides the legal tender in the Pitcairn Island and the Cook Islands, and in Tokelau, Niue, and the Ross Dependency, a region in Antarctica claimed by New Zealand.

The New Zealand dollar is colloquially referred to as the “ kiwi, ” a flightless bird native to New Zealand that appears on the area ’ randomness $ 1 mint. Although sometimes denoted as NZ $, the kiwi dollar is more normally shown with a simple $ signal. New Zealand ’ mho currentness comprises five coins and five banknotes. The NZD is divided into 100 cents. The foreign commute appellation 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 .

Summary

• The New Zealand Dollar is the legal currency of the island nation of New Zealand.
• Initially pegged to the US dollar, the kiwi dollar now floats freely in the forex market and is one of the most widely traded currencies worldwide.
• The New Zealand dollar is denominated in an equal number – five each – of coins and banknotes.

New Zealand’s Currency

The New Zealand dollar is a fairly new entrant to the world currency market, as it was only introduced in 1967. Before the advent of the NZ dollar, the official currentness of New Zealand was, since 1840, the New Zealand irish pound, with 1 cypriot pound = 20 shillings and 1 shilling = 12 penny.

After a closely 10-year long analyze by a government committee, the decisiveness was made to shift the nation ’ s currency to a decimal fraction system. The New Zealand Parliament passed the Decimal Currency Act in 1964, officially transitioning to the newfangled dollar currentness in July 1967. The New Zealand dollar was initially pegged to the US dollar at a rate of 1 New Zealand dollar = 1.43 USD. Ironically and coincidentally, it is about the accurate reverse of the USD/NZD exchange pace in late 2020, with the current rate sitting at 1.42 NZD = 1 USD. New Zealand ’ south cardinal depository financial institution, the Reserve Bank of New Zealand, chose to drop the new zealander ’ s peg to the US dollar when the United States abandoned the aureate criterion in 1971. From then until 1985, the New Zealand dollar value was pegged to a trade-weighted basket of currencies. From 1985 fore, the kiwi was allowed to float in the foreign commute market freely. however, New Zealand ’ mho central deposit occasionally intervenes in the forex market, selling large quantities of kiwi dollars in ordering to prevent the currentness from increasing far in value. It is a measure frequently undertaken by a country ’ s central trust in order to keep its export products beautifully priced to alien buyers .

New Zealand Dollar Coins and Banknotes

The coin denominations presently in circulation in New Zealand ’ south currency are 10 cents, 20 cents, 50 cents, one dollar, and two dollars. previously existing denominations of 1 penny, 2 cents, and 5 cents were phased out of circulation between 1988 and 2006. The obverse side of each coin is imprinted with an persona 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. Although New Zealand ’ s been effectively autonomous since the early 1900s, it is still, as recognized in the nation ’ s Constitution, “ Her Majesty ’ mho Government, ” as a member of the british Commonwealth. The master New Zealand dollar banknotes all featured portraits of Queen Elizabeth. distillery, those were replaced on all but the $ 20 notes in later currentness 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 ’ second right to vote movement. stream bill denominations are as follows : $ 5, $ 10, $ 20, $ 50, and $ 100. The $ 1 and $ 2 banknotes were discontinued in 1991 when the decisiveness was made to replace them with coin denominations. The $ 50 bill did not come along until 1983, 16 years after the first offspring of New Zealand dollars. Since the turn of the hundred, paper banknotes have been gradually replaced with polymer notes that are both more durable and less national to counterfeiting.

Keep Learning

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Category : Economy