NZD New Zealand Dollar Сurrency History, Country & Symbol

The currency is subdivided into cents, with coins and banknotes issued in various denominations. Whether you change money in advance, on arrival, or simply use your card to pay when you’re in New Zealand, you’ll soon become familiar with the notes and coins you’re handling. Check out Wise as a travel card you can use to hold and exchange NZD with low fees and the mid-market rate – or try Revolut as a convenient card you can top up in AUD and use in New Zealand easily. Because exchange rates change so frequently, and every provider offers different rates it’s hard to say the cheapest way and place to exchange currency. You’ll always get the lowest available fee and there are no extra foreign transaction charges. If you don’t want to worry about converting your cash, you can also use a prepaid travel card to spend and make cash withdrawals on arrival, which can be a cost effective and time saving solution.

It is estimated that the polymer note lasts four times longer than regular linen or paper notes. Interestingly, the polymer note can go through a washing machine without suffering any material damage. In 2016, the currency had its most recent update, with even more bright colors and updated security features. 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 2005 that it would go ahead with the proposed changes.

The symbol for the New Zealand dollar is “$,” but it is often written as “NZ$” to distinguish it from other currencies using the same symbol. This notation appears in financial statements, trade pricing, and foreign exchange platforms. For example, an invoice for imported goods from New Zealand might list a price as “NZ$1,500” to clarify the 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. It took another 30 years before the Reserve Bank replaced the currency of pounds, shillings, and pence with actual dollars and cents.

Today, the NZD is one of the ten most traded currencies in the world and is particularly popular with currency traders due to its high liquidity and relatively low interest rates. Get the Currency Shop’s exchange rate tracker so you can keep an eye on mid-market AUD/NZD rates and make your money work for you in New Zealand. If you have run out of time before your trip, you might find you get a better rate and lower overall costs if you make an ATM withdrawal on arrival in New Zealand instead. New Zealand Dollars is shortened to the code NZD online and in currency exchange offices, and you’ll often also see it written as NZ$ on menus and in stores.

New Zealand, with a population of around 5 million, is a relatively small economy on the global scale.
Hedge funds and institutional investors frequently engage in carry trades with the NZD, borrowing in low-interest currencies like the Japanese yen to invest in higher-yielding New Zealand assets.
New Zealand’s economy faces several challenges, such as the need to diversify its export markets, reduce its reliance on primary industries, and invest in innovation and technology.
He is an expert in New Zealand travel and has tested over 600 activities and 300+ accommodations across the country.
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Using a travel debit card in New Zealand is usually cheap, safe and convenient. A few providers in Australia offer multi-currency cards which come with a linked payment account that lets you convert, hold and spend in NZD. That allows you to add a balance in AUD and switch over to NZD to lock in the exchange rate and set your travel budget. If you’re using a card for payments in New Zealand do remember to check for any extra fees which may apply when you spend in foreign currencies.

How much does a trip to New Zealand cost?

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.

This has made the NZD attractive to investors looking for higher returns on their investments. 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. Travel money cards are available from banks and specialist digital providers, and often offer the option to hold a broad range of currencies for convenient spending in New Zealand and beyond.

Can you use Australian dollars in New Zealand?

These trade agreements further strengthen New Zealand’s position in the global market and ensure that the NZD remains relevant in international commerce. The original New Zealand dollar banknotes all featured portraits of Queen Elizabeth. The NZD is often classified as a “commodity currency” due to New Zealand’s reliance on agricultural and natural resource exports. Its value is influenced by global demand for dairy, meat, and forestry products.

The coins you’ll commonly see in circulation in New Zealand include $1 and $2, plus smaller 10, 20 and 50 cent coins.
The currency is used by New Zealanders both domestically and internationally, with around two-thirds of all NZD being held outside of the country.
After a three-month public submission period that ended on 4 February 2005, the Reserve Bank announced on 31 March 2005 that it would go ahead with the proposed changes.
The New Zealand Dollar is a freely floating currency, and its value is determined by market forces.

New Zealand Dollar in the Global Financial System

For importers, a stronger NZD raises costs for raw materials and finished goods, potentially squeezing margins. Exporters to New Zealand face the opposite challenge—a weaker NZD reduces local purchasing power, affecting demand. Businesses can mitigate these risks through strategic pricing and flexible contract terms to ensure stability despite currency shifts. Companies involved in trade with New Zealand must consider currency fluctuations when setting prices, projecting revenue, and managing financial risk.

For this reason, the interest rate differential between the Reserve Bank of New Zealand (RBNZ) and the Federal Reserve (Fed) will affect the value of these currencies when compared to each other. 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 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.

Both in Australia and in New Zealand, steer clear of exchanging currency at the airport. A captive market means that rates are often worse in the airport than in city centres. When planning a trip or a working holiday, it’s good to know what to expect from the cost of living. This includes food, transport, activities… Basically, anything you might need to pay for while you are in New Zealand. For this reason, we have put together the following articles to give you an idea of the cost of living in New Zealand.

While rates move around all the time, the mid-market exchange rate for your currency pair is always a good place to start. It’s the rate that banks and currency exchange services get when they buy and sell currencies on global devops engineer job description exchanges, so a good benchmark. Some banks offer currency exchange, but it’s not as common as you might think, as so many people have moved over to card usage overseas.

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. Although New Zealand’s been effectively self-governing since the early 1900s, it is still, as recognized in the country’s Constitution, “Her Majesty’s Government,” as a member of the British Commonwealth. Gross domestic product is a measurement of the value derived from a country’s production of goods and services over a specific period. 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.

When demand for these goods rises, the NZD tends to strengthen as export revenues increase. The RBNZ follows an inflation-targeting framework, aiming to keep inflation between 1% and 3%. If inflation falls too low, it may lower rates or use quantitative bitstamp review easing to stimulate demand. 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.

This prevents confusion with other dollar-denominated currencies like the US dollar (USD) financial literacy for millennials or Canadian dollar (CAD). Financial institutions and foreign exchange markets rely on this code when quoting exchange rates and processing transactions. Before you travel to New Zealand it’s worth getting to know the exchange rates you can expect when you’re there.