New Zealand dollar
Categories: Asian currencies | National currencies | Economy of New Zealand
The New Zealand dollar (ISO 4217: NZD, sometimes NZ$ and often informally known as the Kiwi (dollar)) is the official currency of New Zealand, the Cook Islands, Niue, Tokelau, and the Pitcairn Islands. It was introduced in 1967 to replace the New Zealand pound, when the country decimalised its currency.
The NZD is made up of 100 cents.
Contents |
Denominations
Currency is available as both notes and coins.
Notes
New Zealand notes
| Value | Obverse | Reverse |
|---|---|---|
| 100 Dollars | Image:NewZealandHundredDollarNote1.png Features Lord Rutherford of Nelson, a New Zealand-born scientist who performed much early work in the investigation of the atom. | Image:NewZealandHundredDollarNote2.png Features the mohua, a bird found in certain areas of the South Island. |
| 50 Dollars | Image:NewZealandFiftyDollarNote1.png Features Sir Apirana Ngata, a prominent Māori politician who worked to protect and rejuvenate Māori culture. | Image:NewZealandFiftyDollarNote2.png Features a type of kokako, a rare New Zealand bird. |
| 20 Dollars | Image:NewZealandTwentyDollarNote1.png Features Queen Elizabeth II, the current Queen of New Zealand and other Commonwealth Realms. | Image:NewZealandTwentyDollarNote2.png Features the Karearea, sometimes called the New Zealand Falcon. |
| 10 Dollars | Image:NewZealandTenDollarNote1.png Features Kate Sheppard, the most important figure in the New Zealand women's suffrage movement. | Image:NewZealandTenDollarNote2.png Features the Whio (also known as the Blue Duck), a rare bird from the country's mountainous areas. |
| 5 Dollars | Image:NewZealandFiveDollarNote1.png Features Sir Edmund Hillary, New Zealand mountaineer who with Tenzing Norgay became the first to reach the summit of Mount Everest. | Image:NewZealandFiveDollarNote2.png Features the hoiho, or Yellow-eyed Penguin, one of the world's rarest penguin species. |
One and two dollar notes were phased out in 1991 with the introduction of the one and two dollar coins.
Millennium $10 note
A special millennium version of the $10 note was issued in 2000. It had security features never used before, and like other New Zealand banknotes, it was made of polymer.
Cook Islands Banknotes
Work in progress.
From 1987 to 1995, the Cook Islands issued their own banknotes in denominations of $3, $10, and $20. There were two design sets, one issued from 1987 to 1991, and one issued from 1992 to 1995. Cook Islanders are showing a preference for New Zealand banknotes, but the Cook Islands notes remain legal tender. You can find pictures of the 1992 issue here.
It should also be noted that the Cook Islands have been minting their own coins.
Coins
The obverse (front) design of all the coins feature the standard effigy used in the United Kingdom of HM The Queen with the legend ELIZABETH II NEW ZEALAND [date], or since 1999, NEW ZEALAND ELIZABETH II [date]. Only some state decorations and orders in New Zealand use the abbreviated Latin inscription ELIZABETH II D. G. REG. F. D. (Dei Gratia Regina Fidei Defensor), which means 'Elizabeth the Second, By the Grace of God, Queen, Defender of the Faith'.
The sizes and weights of the "silver" coins are identical to the specifications of British coins prior to the UK's decimalisation. The 50c coin replaced the crown, the 20c the florin, the 10c the shilling and the 5c the sixpence. This same conversion was used in Australian coinage.
Due to the fact that many countries around the world use a British-derived coinage system, many Australian, Fijian and Singaporean coins are in daily circulation in New Zealand (although not being official legal tender). In the case of Australian coins the obverse side is almost the same as New Zealand coins, and a large number of 5, 10, and 20 cent Australian coins are used in New Zealand in an identical manner to their true counterparts. It is of note that the United Kingdom itself has been phasing out these sizes of coins, and there has been the odd case of a British 5p or 10p appearing in a customer's change.
Shown below are the reverse designs.
| Value | Design | Introduced | Edge | Diameter | Weight |
|---|---|---|---|---|---|
| 5 Cents | Image:Nz 5c front.jpg Features the tuatara, a rare reptile native to New Zealand. | 1967 | 100% milling. | 19.4mm | 2g |
| 10 Cents | Image:Nz 10c front.jpg Features a Māori koruru, or carved head. | 1967 | 100% milling. | 23.6mm | 6g |
| 20 Cents | Image:Nz 20c front.jpg Features well-known Māori carving from the Arawa iwi. Coins minted before 1991 feature the Kiwi (see below). | 1967 | 100% milling. | 28.6mm | 10g |
| 50 Cents | Image:Nz 50c front.jpg Features HM Bark Endeavour, the vessel of early explorer James Cook. | 1967 | Five plain segments separated by milling. | 31.8mm | 14g |
| 1 Dollar | Image:Nz 1d front.jpg Features the Kiwi, New Zealand's national bird. | 1991 | Eight equal segments alternating between milling and plain edge. | 23mm | 8g |
| 2 Dollars | Image:Nz 2d front.jpg Features the kotuku (white heron), a bird important to Māori mythology, in flight. | 1991 | Milling all around except for an infused channel containing ten raised dots. | 26.5mm | 10g |
Coins and Notes
Lack of 1 and 2 cent coins
Prior to 30 April 1990 one and two cent coins were legal tender, but were withdrawn amid some controversy. However, modern non-cash transactions (such as electronic transactions and cheques) need not be multiples of five cents, and New Zealanders rapidly adapted to the change.
The lack of one and two cent coins means that cash transactions are normally rounded to the nearest five cents. Some larger retailers (notably one supermarket chain), in the interests of public relations, elected to round the total price down (so that $4.99 becomes $4.95 instead of $5.00). Alternatively, many retailers rounded all their prices to the nearest five cents to avoid the issue entirely — so a New Zealand shopper often encounters products for sale at prices like $4.95. However, a shopper can spend less than five cents by using the electronic EFTPOS system, which nearly all retailers provide.
Limits on coins allowed to be used
According to the Reserve Bank Act 1989, there are limits on the amount that can be paid for by coins:[1]
- coins of a denomination of $10 or more, there is no limit
- coins of a denomination of $1 or more but less than $10, the limit is $100
- coins of the denomination of 5 cents or more, but less than $1, the limit is $5
- coins of the denomination of less than 5 cents, the limit is 20 cents
Polymer banknotes
New Zealand notes, since 1999, have been produced as plastic polymer banknotes instead of conventional paper. There was a slight controversy, but this move was mostly met with curiosity by the public. Such polymer notes have many advantages, notably a photocopy can effortlessly be distinguished from the real thing by touch, and many Kiwis have been thankful that the notes go though a washing machine with no ill effects. The notes are also difficult to tear without the aid of a cutting tool. Initial versions of the polymer $5 note had issues with the ink wearing and aging prematurely, but this was rectified in later production runs.
The Reserve Bank expects polymer notes to last at least four times as long as the old bank notes. They also have vastly improved security features and are very difficult to counterfeit.
Damaged Notes
The Reserve Bank accepts all New Zealand currency for payment at face value. This applies to all demonetised or withdrawn currency, however such currency need not be accepted by money changers as this is no longer legal tender. All decimal notes are legal tender except $1 and $2 notes as these have been withdrawn.
Damaged notes are still useable so long as they are recognisable. In particular, the legibility of the note's serial numbers is important. The Reserve Bank website notes that as a rule of thumb if there is more than half a bank note they will pay its full value. To receive payment people have to turn in the note to the Reserve Bank in Wellington or any bank. Explaining Currency
Upcoming Changes
On 11 November 2004 the Reserve Bank announced that it proposed to take the 5c coin out of circulation and to make the current 50, 20 and 10 cent coins smaller and use plated steel to make them lighter. The reasons given were:
- The 5c coin is now worth less than half what a cent was worth back in 1967, when New Zealand decimalised its currency.
- Surveys had found that 50, 20 and 10 cent coins were too large and could not be easily carried in large quantities. The current 50c coin, with a diameter of 3.2 centimetres, is one of the largest coins in circulation worldwide.
- The size of the 10c piece is too close to that of the dollar - so close, in fact, that it has been possible on occasion to put two 10c pieces in a parking meter together and receive a dollar's worth of parking time. (Naturally, this can also backfire and jam the meter.)
After a three-month public submission period that ended on 4 February 2005, the Reserve Bank announced on 31 March it would go ahead with the proposed changes. The changeover period, lasting no more than three months, starts in July 2006.
In August 2005, the Royal Canadian Mint, who has minted Canadian coins in plated steel in the past, was selected by the Reserve Bank to make the new coins.
Timeline of value
- Before 10 July, 1967, New Zealand used the New Zealand pound, which was pegged to the UK's Pound sterling
- On 10 July, 1967, New Zealand decimalised its currency by introducing the New Zealand dollar, at the rate of $2 per £1. The new currency remained pegged to Sterling.
- On 23 December, 1971 the New Zealand dollar was pegged to the United States dollar, rather than Sterling. The new Official Rate was US$1.216 with a 4.5% fluctuation range, with unchanged gold content.
- From 9 July, 1973 to 4 March 1985 the dollar's value was determined from a trade-weighted basket of currencies.
- From 4 March, 1985 the dollar's value has been determined by the financial markets, and is generally in the range of about 0.40–0.74 United States dollars, with a particularly low valuation during 2001, and particularly high during early 2005, mainly due to the drop in value of the US dollar.
Trivia relating to the banknotes
- The $50 note is the only note featuring a Māori person on the obverse.
- All the names of the birds on the reverse are in Māori, and all begin with a consonant.
- A majority of the banknotes feature males, but the $10 and $20 notes feature women.
- A majority of the banknotes feature deceased people, but the people on the $5 and $20 notes are still alive.
- The $5 note is the only note to have a special object in the bottom left-hand corner.
- The signature of ex NZ Reserve Bank Governor, Don Brash appears on the front of the current notes.
External links
- International economics - History of the regulation surrounding the NZ$ exchange rate
- National Bank of New Zealand - View the current exchange rate graphs of NZ$/US$
- Reserve Bank of New Zealand - Government department in charge of monetary policy in New Zealand
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