New Zealand Dollar (NZD)

Basic Concepts of the New Zealand Dollar

The New Zealand Dollar is the official currency of New Zealand, issued and managed by the Reserve Bank of New Zealand, with the currency code NZD and the symbol $ or NZ$ to differentiate it from other US Dollar currencies. It adopts the decimal system, 1 New Zealand dollar is equal to 100 cents, and is one of the major currencies actively traded in the global foreign exchange market.

Countries and regions where New Zealand Dollar is used

The New Zealand Dollar circulates mainly in mainland New Zealand and its dependent territories such as the Cook Islands, Niue, Tokelau and the Pitcairn Islands. While the New Zealand Dollar is used in these territories, some of them issue distinctive coins as legal tender. In addition, the New Zealand Dollar has some influence in the Pacific Island countries and is often used for regional trade.

Units and Denominations of the New Zealand Dollar

The New Zealand Dollar is divided into coins and banknotes: coins in denominations of 10 cents, 20 cents, 50 cents, $1 and $2, mostly made of silver metal with local cultural symbols; banknotes in denominations of $5, $10, $20, $50 and $100, made of polymer, with designs highlighting New Zealand's historical figures and natural landscapes, as well as being both counterfeit-proof and durable.

Historical Background of the New Zealand Dollar

The New Zealand Dollar officially replaced the New Zealand Pound in 1967 with a decimal reform and was initially pegged to the U.S. Dollar. 1985 saw the adoption of a floating exchange rate system whereby its value was determined by market supply and demand. This change promoted economic liberalization and made the New Zealand dollar an important currency in the international foreign exchange market, reflecting New Zealand's journey from an agricultural economy to a diversified one.