NZD New Zealand Dollar: What it is, How it Works, FAQs

So as the number of visitors to New Zealand rises, the economy does well and the currency appreciates. When the Fed intervenes in open market activities to make the U.S. dollar stronger, for example, the value of the NZD/USD cross could decline, due to a strengthening of the U.S. dollar when compared to the New Zealand dollar. The first coins had pictures of the 11 best short term investments in 2021 native birds of New Zealand on the “tails” side, a tradition that has continued, with the British monarch on the head side.

On 11 November 2004 the Reserve Bank announced that it proposed to take the 5c coin out of circulation and to make the 50c, 20c and 10c 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 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. Our currency rankings show that the most popular New Zealand Dollar exchange rate is the NZD to USD rate. The currency code for Dollars is NZD, and the currency symbol is $. Below, you’ll find New Zealand Dollar rates and a currency converter.

The carry trade is one of the most popular trading strategies in the currency market. Executing a carry trade involves nothing more than buying a high-yielding currency and funding it with a low-yielding currency. Traders and investors have favored the New Zealand dollar as a carry trade currency because the country has had higher interest rates compared to other developed nations. Banks often advertise free or low-cost transfers, but add a hidden markup to the exchange rate. Wise gives you what is system development life cycle the real, mid-market, exchange rate, so you can make huge savings on your international money transfers.

Our smart tech means we’re more efficient – which means you get a great rate. Compare our rate and fee with our competitors and see the difference for yourself. Our currency rankings show that the most popular US Dollar exchange rate is the USD to USD rate. NZD is one of the most traded currencies in the world, making it a liquid currency in forex markets. 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 Reserve Bank of New Zealand (RBNZ) updated the currency in 2015 with even more bright colors and improved security features. The New Zealand dollar contributes greatly to the total global exchange market—far in excess of New Zealand’s relative share of population or global GDP. The most recent issue of New Zealand banknotes is the seventh series, first released in October 2015 and May 2016. On 11 June 2007 the Reserve Bank sold an unknown worth of New Zealand dollars for nine billion USD in an attempt to drive down its value. This is the first intervention in the markets by the Bank since the float in 1985. Each banknote and coin of New Zealand’s currency looks different.

What Is New Zealand’s Third Largest Trading Partner?

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. 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. 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.

1. From 9 July 1973 to 4 March 1985 the dollar’s value was determined from a trade-weighted basket of currencies.
2. In 1999, series 6 polymer notes replaced the paper notes.
3. All investment services are provided by the respective Wise Assets entity in your location.
4. New Zealand bill denominations include $5, $10, $20, $50, and $100.
5. The Reserve Bank of New Zealand (RBNZ) updated the currency in 2015 with even more bright colors and improved security features.

Current exchange rates

Gross domestic product is a measurement of the value derived from a country’s production of goods and services over a specific period. The country’s top industries include agriculture, dairy, forestry, fishing, mining, and tourism. New Zealand is one of the world’s largest exporters of whole milk powder so the NZD would most likely benefit if milk prices rise.

New Zealand currency has had a long history of over 160 years. In fact, 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. The New Zealand dollar (NZD) is the official currency of New Zealand. NZD is made up of 100 cents and is often represented by the symbol $ or NZ$ to set it apart from other currencies based on dollars. NZD also sees use in the Cook Islands, Niue, Tokelau, and the Pitcairn Islands.

What Does It Mean When a Currency Is Floated?

Wise is a Money Service Business registered with FinCen. In other states, the program is sponsored by Community Federal Savings Bank, to which we’re a service provider. In 1986, New Zealand adopted Raphael Maklouf’s new portrait of the Queen. The 1c and 2c coins were last minted for circulation in 1987, with collector coins being made for 1988. The coins were demonetised on 30 April 1990.[19] The lack of 1c and 2c coins meant that cash transactions were normally rounded to the nearest 5c (10c from 2006), a process known as Swedish rounding. The Xe Rate Alerts will let you know when the rate you need is triggered on your selected currency pairs.

Introduced in 1840, the New Zealand Pound was the first 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.

Live Currency Rates

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 understanding forex quotes last 30 and 90-day periods. These are the highest points the exchange rate has been at in the last 30 and 90-day periods.

Convert New Zealand Dollar to US Dollar

A decade later, the Reserve Bank of New Zealand was established. On the introduction of the dollar, coins came in denominations of 1c, 2c, 5c, 10c, 20c, and 50c. The obverse designs of all the coins featured Arnold Machin’s portrait of Queen 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 intended for them. Those modern art and sculpture themed designs were leaked to a newspaper and met a very negative public reaction.

Since 2006, there have been no coins under the value of five cents and the value of cash transactions are rounded. New Zealand’s currency is the dollar, more affectionately known as the kiwi. As the country’s central bank, the Reserve Bank of New Zealand (RBNZ) controls most facets of the currency because it sets and monitors exchange and interest rates.

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. Polymer bills can go through a washing machine without suffering any material damage.

Other economic factors, such as growth rate, GDP, unemployment, and inflation are strong and, therefore, lead to a strong currency. The New Zealand dollar is considered a carry-trade currency in that it is relatively high-yielding so investors will often buy the NZD and fund it with a lower-yielding currency such as the Japanese yen or the Swiss franc. 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. Australia ranks as New Zealand’s second-largest trading partner behind China.