New Zealand dollar
From Wikipedia, the free encyclopedia
| ISO 4217 Code | NZD |
| User(s) | New Zealand, Cook Islands, Niue, Pitcairn Islands, Tokelau |
| Inflation | 3.5% (New Zealand only) |
| Source | Reserve Bank of New Zealand, Q3 2006 |
| Pegged by | Cook Islands dollar at par |
| Subunit | |
| 1/100 | cent |
| Symbol | $ |
| cent | c |
| Coins | 10c, 20c, 50c, $1, $2 |
| Banknotes | $5, $10, $20, $50, $100 |
| Central bank | Reserve Bank of New Zealand |
| Website | www.rbnz.govt.nz |
The New Zealand dollar (currency code NZD) is the currency of New Zealand, the Cook Islands, Niue, Tokelau, and the Pitcairn Islands since 1967. It is normally abbreviated with the dollar sign $, or alternatively NZ$ to distinguish it from other dollar-denominated currencies. It is often informally known as the "Kiwi (dollar)" and is divided into 100 cents.
The New Zealand dollar replaced the New Zealand pound, when the country decimalised its currency in 1967-1969. On 31 July 2006 the Reserve Bank of New Zealand introduced new coinage, removing the 5 cent coin from circulation, and replacing the 10, 20 and 50 cent coins with smaller ones.
The Cook Islands also issues its own currency, the Cook Islands dollar, alongside with the New Zealand dollar.
Contents |
[edit] Denominations
Currency is available as both notes and coins.
[edit] Notes
| Image | Value | Obverse | Reverse | |
|---|---|---|---|---|
 |
 |
$5 | Features Sir Edmund Hillary, New Zealand mountaineer who with Tenzing Norgay became the first to reach the summit of Mount Everest. He is one of few living people (excluding royalty) who are featured on currency. | Features the hoiho, or Yellow-eyed Penguin, one of the world's rarest penguin species. |
 |
 |
$10 | Features Kate Sheppard, the most important figure in the New Zealand women's suffrage movement. | Features the Whio (also known as the Blue Duck), a rare bird from the country's mountainous areas. |
 |
 |
$20 | Features Queen Elizabeth II, the current Queen of New Zealand and other Commonwealth Realms. | Features the Karearea, sometimes called the New Zealand Falcon. |
 |
 |
$50 | Features Sir Apirana Ngata, a prominent Māori politician who worked to protect and rejuvenate Māori culture. | Features a type of Kōkako, a rare New Zealand bird. |
 |
 |
$100 | Features Lord Rutherford of Nelson, a New Zealand-born scientist and winner of the Nobel Prize in Chemistry of 1908 who performed much early work in the investigation of the atom. | Features the mohua, a bird found in certain areas of the South Island. |
One and two dollar notes were phased out in 1991 with the introduction of the one and two dollar coins.
[edit] 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.
 A New Zealand $100 polymer banknote, replacement of the old paper notes. The beige-coloured oval and fern are actually transparent panels. |
 The mohua, a bird found in certain areas of the South Island. |
 An old paper $100 note. |
 The millennium banknote (front and back). |
[edit] Coins
See also New Zealand 20 cent coin
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].
The sizes and weights of the original "silver" coins were 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 regional travel and the fact that many other former British colonies around the world use a coinage system with British-derived origins of sizing and weight, many Fijian, Samoan, Singaporean and especially Australian coins had been in daily circulation in New Zealand despite not being official legal tender. It is of note that the United Kingdom itself does not use these sizes of coins any more, and there has been the odd case of foreign coins appearing in a customer's change. The consistently similar but not significantly higher value of the Australian currency and the obverse side of Australian coins being almost the same as New Zealand coins also didn't discourage this practice, with millions of 5, 10, and 20 cent Australian coins having been used in New Zealand in an identical manner to their true counterparts. The coinage size and material changeover (see below) of 31 July to 31 October 2006 means these foreign coins can no longer be accepted interchangeably, though the new 10 cent coin strongly resembles the British One Penny coin in size, weight and appearance and the unchanged one dollar coin remains very similar to the Fijian counterpart.
Images shown below are the reverse designs.
| Current mass circulation coins | ||||||
|---|---|---|---|---|---|---|
| Image | Value | Diameter | Weight | Edge | Design | Introduction |
| 10¢ | 20.50 mm | 3.30 g | No milling | Features a Māori koruru, or carved head. | 2006 | |
| 20¢ | 21.75 mm | 4.00 g | "Spanish Flower", seven unmilled sections separated by indents. | Features well-known Māori carving depicting Pukaki, a chief of the Arawa iwi. | 2006 | |
| 50¢ | 24.75 mm | 5.00 g | No milling | Features HM Bark Endeavour, the vessel of early explorer James Cook. | 2006 | |
 |
$1 | 23 mm | 8 g | Eight equal segments alternating between milling and plain edge. | Features the Kiwi, New Zealand's national bird and the Silver Fern. | 1990 |
 |
$2 | 26.5 mm | 10 g | Milling all around except for an infused channel containing ten raised dots. | Features the kotuku (white heron), a bird important to Māori mythology, in flight. | 1990 |
The reverse sides of coins introduced in 1967 did not follow the designs that were originally indended for them. Those modern art and sculpture themed designs were leaked to a newspaper and met a very negative public reaction. The final releases were given more conservative designs in line with public expectations.
| Past mass circulation coins | |||||||
|---|---|---|---|---|---|---|---|
| Image | Value | Diameter | Weight | Edge | Design | Issued | Demonetised |
| 1¢ | 17.526 mm | No milling. | Features the Silver Fern. | 1967-1988 | 1990 | ||
| 2¢ | 21.082 mm | No milling. | Features kowhai flowers. | 1967-1988 | 1990 | ||
 |
5¢ | 19.431 mm | 2.83 g | 100% milling. | Features the tuatara, a rare reptile native to New Zealand. | 1967-2005 | 2006 |
| 10¢ | 23.62 mm | 5.66 g | 100% milling | Features a Māori koruru, or carved head. 10¢ coins issued during the 1967-69 changeover period also have "One Shilling" written on the reverse side. | 1967-1969 | 2006 | |
 |
10¢ | 23.62 mm | 5.66 g | 100% milling | Features a Māori koruru, or carved head. | 1970-2005 | 2006 |
| 20¢ | 28.58 mm | 11.31 g | 100% milling | Features the Kiwi, a rare native bird of New Zealand. | 1967-1990 | 2006 | |
 |
20¢ | 28.58 mm | 11.31 g | 100% milling | Features well-known Māori carving depicting Pukaki, a chief of the Arawa iwi. | 1990-2005 | 2006 |
 |
50¢ | 31.75 mm | 13.61 g | Five plain segments separated by milling | Features HM Bark Endeavour, the vessel of early explorer James Cook. | 1967-2005 | 2006 |
[edit] History
This is a brief history of coins and the dates that they were minted. Note that some coins were minted outside the times that remained legal. These were usually minted for collector editions and not for general expenditure.
- One Cent: Minted from 1967 to 1988. The one cent coin depicted a fernleaf curled around the number one. The one cent coins were last minted for circulation in 1987, with collector coins being made for 1988. The coins were demonetised on 1 May 1990
- Two Cent: Minted from 1967 to 1988. The two cent coin depicted kowhai flowers curled around the number two. The 1967 coin was also released with an alternate 'Bahamas Mule' engraving. As with the one cent coin, these were last minted for circulation in 1987, with collector coins being made for 1988. The coins were also demonetised on 1 May 1990.
- Five Cent: Minted from 1967 to 2006, these coins were demonetized on 1 November 2006.
- Ten Cent: Minted from 1967 to present day. This coin was reduced in size and changed from a silverish finish to a bronze finish during 2006.
- Twenty Cent: Minted from 1967 to present day. This coin changed design and was reduced in size during 2006. The original design depicted a kiwi with fern leaves in the background, and coins minted during 1990, 2002 and 2004 feature a carving of Pukaki, an 18th Century chief of the Arawa tribe.[1] The Pukaki coins were always less common than the original kiwi design during the 1990-2006 period.
- Fifty Cent: Minted from 1967 to current day. This coin depicts the sailing ship known as the Endeavour. This was NZ's largest coin until it was reduced in size during 2006.
- Silver Dollars: New Zealand has produced many silver dollars, usually annually. Listed here are the descriptions given to the dollars.
- 1967: Coat of Arms
- 1969: Bi-Centenary
- 1970: Mt. Cook
- 1970: Cook Islands
- 1971-1973: Coat of Arms
- 1974: Games
- 1974: N.Z.Day
- 1975-1976: Coat of Arms
- 1980: Fantail
- 1981: Royal Visit
- 1982: Takahē
- 1983: Royal Visit
- 1983: 50th Anniversary
- 1984: Black Robin
- 1985: Black Stilt
- 1986: Royal Visit
- 1987: National Parks
- 1988: Penguin
- 1989: Games (4 variants, Runner, Gymnast, Swimmer, Weightlifter)
- 1990: 150th Anniversary (Treaty of Waitangi)
- 1 Dollar coins: Minted from 1990 to the present day. The one dollar coin depicts a kiwi surrounded by ferns.
- 2 Dollar coins: The two dollar depicts a heron in flight. A range of two dollar coins depicting a kingfisher were made during 1993. Unusually the coins which were designed to be similar to the Australian one and two dollar coins, were designed in reverse proportion to their models. The Australian one dollar is the size of the NZ two, and the Australian two dollar the size of the NZ one.
- Five dollar coins: Minted sporadically from 1990 onwards. Five dollar coins have never been minted for circulation but specifically for commemorative purposes. They are legal tender.
- Ten dollar coins: Minted sporadically from 1995 onwards. Ten dollar coins have never been minted for circulation. They are legal tender.
- Twenty dollar coins: Minted in 1995 and 1997, only 2 sets of twenty dollar coins have been made.
- One Hundred and Fifty dollar coins: Minted in 1990 and 1998, only 2 sets of one hundred and fifty dollar coins have been made.
The first bank notes were issued in New Zealand in 1840 by the Union Bank of Australia. Prior to the reserve bank of New Zealand taking over the printing of all notes, notes were issued by varying banks at the time. The Reserve bank took over printing notes on August 1 1934
- One dollar Note: Minted from 1967 to 1991. The note usually depicted a fantail on one side, and a young Queen Elizabeth II on the other.
- Two dollar note: Minted from 1967 to 1991. This note depicted the native rifleman bird on one side and the Queen on the other.
- Five, Ten, Twenty, Fifty and One Hundred Dollar notes have been issued since 1967. They are still in circulation and can be viewed in the images above.
[edit] Withdrawal of small 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, a process known as Swedish Rounding. 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.
As of 1 November 2006, the 5 cent piece was dropped from circulation; shops now round up or round down prices for goods to the nearest 10 cents for cash transactions. As with before, some shops chose to round down exclusively.
[edit] 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:[2]
- 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
[edit] 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 people have been thankful that the notes go through a washing machine with no ill effects. The notes are also difficult to tear without the aid of a cutting tool, but will tear more easily than the paper notes if a tear is started. 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.
[edit] 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 usable 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
[edit] Changes to Coins
On 11 November 2004 the Reserve Bank announced that it proposed to take the 5¢ coin out of circulation and to make the existing 50, 20 and 10 cent coins smaller and use plated steel to make them lighter. The reasons given were:
- The 5¢ 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 original 50c coin, with a diameter of 3.2 centimetres, was one of the largest coins in circulation worldwide.
- The size of the 10¢ piece was 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.)
- The prices of copper and nickel used to mint the old coins were high and rising steeply.
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 started on 31 July 2006, with the old coins usable up until 31 October 2006. The older 50, 20, 10 and 5 cent pieces are now no longer legal tender, but are still redeemable at the Reserve Bank.
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.
The new coins have a unique electromagnetic signature which enables modern vending machines to determine coin counterfeiting and foreign coins [3]. But a way of foiling these defences was found within two weeks of the new coins' release [citation needed].
It was estimated the changeover would remove millions of dollars of foreign coinage from circulation.
[edit] 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 has been in the range of about 0.39–0.74 United States dollars. The dollar's most recent minimum average daily value was 0.3922 U.S. dollars on 22 November 2000, and its most recent maximum was 0.7442 U.S. dollars on 17 March 2005. Much of this medium-term variation in the exchange rate has been attributed to differences in interest rates.
| Use Yahoo! Finance: | AUD CAD CHF EUR GBP HKD JPY USD |
| Use XE.com: | AUD CAD CHF EUR GBP HKD JPY USD |
[edit] Trivia
- The $5 note is the only note to have a special object in the bottom left-hand corner.
- The signature of ex NZ Reserve Bank Governor Don Brash still appears on some older notes (Alan Bollard's appears on newer notes).
- The letters "RBNZ" are printed along the bottom of all New Zealand banknotes. They run along specific parts of each note and are only just visible to the naked eye.
[edit] External links
- International economics - History of the regulation surrounding the NZ$ exchange rate
- National Bank of New Zealand - View the current exchange rate graphs of NZ$/inr
- Change for the Better - Information about changes to coins from 31 July 2006.
| Preceded by: New Zealand pound Reason: decimalisation Ratio: 2 dollars = 1 pound |
Currency of New Zealand July 10, 1967 – |
Succeeded by: Current |
