Australia ranks as New Zealand’s second-largest trading partner behind China. 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.
- However, nothing was made official until 1933, when New Zealand issued their first official coins, based on the British pound, shilling, and pence.
- 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.
- The country’s top industries include agriculture, dairy, forestry, fishing, mining, and tourism.
- There is no restriction on the amount of foreign currency that can be brought in or taken out of New Zealand.
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. The kiwi also circulates in Tokelau, Pitcairn Islands, Niue, and the Cook Islands in addition to being the official currency of New Zealand.
These currency charts use live mid-market rates, are easy to use, and are very reliable. Our currency rankings show that the most popular US Dollar exchange rate is the USD to USD rate. Agriculture is a major factor in the New Zealand economy; more than two-thirds of the exports are agricultural.
What Is the NZD (New Zealand Dollar)?
These are the average exchange rates of these two currencies for the last 30 and 90 days. 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.
The designs remained much the same, but were changed slightly to accommodate new security features, with the most obvious changes being the two transparent windows. Such trades are for risk-seeking investors and tend to be closed out when investors become risk averse. Evidence of this was prevalent during the 2008 financial crisis when the NZD fell close to 50% against the Japanese yen.
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. NZD/USD is affected by factors that influence the value of the New Zealand dollar and/or the U.S. dollar in relation to each other and other currencies. 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. 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 interest rate differential between the Reserve Bank of New Zealand and the U.S. Federal Reserve (Fed) will affect the value of these currencies when compared to each other. 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. Gross domestic product is a measurement of the value derived from a country’s production of goods and services over a specific period.
Popular US Dollar (USD) Currency Pairings
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. Our currency rankings show that the most popular New Zealand Dollar exchange rate is the NZD to USD rate.
$1 and $2 notes were discontinued in 1991 after being replaced with coins. NZD is one of the most traded currencies in the world, making it a liquid cryptocurrency broker canada currency in forex markets. The New Zealand dollar is considered a carry trade currency in that it is a relatively high yielding currency.
Polymer bills can go through a washing machine without suffering any material damage. 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.
New Zealand Currency and the Carry Trade
All major credit cards are accepted in New Zealand, with Visa and Mastercard the most widely used. The New Zealand dollar also circulates in the Cook Islands, Niue, Tokelau, and the Pitcairn Islands. It is often informally known as the “Kiwi (dollar)” and is divided into 100 cents. So as the number of visitors to New Zealand rises, the economy does well and the currency appreciates. 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.
New Zealand bill denominations include $5, $10, $20, $50, and $100. 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 Forex Brokers 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. The currency usually has a bird on one side of a banknote or coin as well as an important historical figure of New Zealand.
The U.S. dollar is the currency most used in international transactions. Several countries use the U.S. dollar as their official currency, and many others allow it to be used in a de facto capacity. On the introduction of the dollar, coins came in denominations of 1c, 2c, 5c, exness broker reviews 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.
It is always indicated on signs outside petrol stations or at the pump. Pricing will depend on the location, time of year, and day of the week, so the below is just to give a general idea of cost. Use our accommodation finder to see price ranges for your specific needs.
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. In 1934, the Reserve Bank of New Zealand was established, becoming the only supplier of banknotes.
The Xe Rate Alerts will let you know when the rate you need is triggered on your selected currency pairs. 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. These are the highest points the exchange rate has been at in the last 30 and 90-day periods. The NZD/USD is also affected by factors that influence the value of the New Zealand dollar and/or the U.S. dollar in relation to each other and other currencies.
There is no restriction on the amount of foreign currency that can be brought in or taken out of New Zealand. However, every person who carries more than NZ$10,000 in cash in or out of New Zealand is required to complete a Border Cash Report(opens in new window). A floating currency is one with value that is permitted to change as it’s compared to other currencies. In 1986, New Zealand adopted Raphael Maklouf’s new portrait of the Queen.
