Create a chart for any currency pair in the world to see their currency history. These currency charts use live mid-market rates, are easy to use, and are very reliable. 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. Investopedia does not provide tax, investment, or financial services and advice.
Our currency rankings show that the most popular US Dollar exchange rate is the USD to USD rate. These are the average exchange rates of these two currencies for the last 30 and 90 days. The coin denominations currently in circulation in New Zealand’s currency are 10 cents, 20 cents, 50 cents, one dollar, and two dollars. Previously existing denominations of 1 cent, 2 cents, and 5 cents were phased out of circulation between 1988 and 2006. After a nearly 10-year long study by a government committee, the decision was made to shift the country’s currency to a decimal system. The New Zealand Parliament passed the Decimal Currency Act in 1964, officially transitioning to the new dollar currency in July 1967.
Current circulating coins
The original New Zealand dollar banknotes all featured portraits of Queen Elizabeth. Still, those were replaced on all but the $20 notes in later currency series by portraits of noteworthy figures in New Zealand’s history, such as Sir Edmund Hillary and Kate Sheppard, a key figure in the women’s suffrage movement. New Zealand’s central bank, the Reserve Bank of New Zealand, chose to drop the kiwi’s peg to the US dollar when the United States abandoned the gold standard in 1971. From then until 1985, the New Zealand dollar value was pegged to a trade-weighted basket of currencies.
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. A floating currency is one with value that is permitted to change as it’s compared to other currencies. The country’s top industries include agriculture, dairy, forestry, fishing, mining, and tourism.
- Interestingly, the polymer note can go through a washing machine without suffering any material damage.
- In 1934, the Reserve Bank of New Zealand was established, becoming the only supplier of banknotes.
- Still, those were replaced on all but the $20 notes in later currency series by portraits of noteworthy figures in New Zealand’s history, such as Sir Edmund Hillary and Kate Sheppard, a key figure in the women’s suffrage movement.
- The New Zealand dollar and Australian dollar exchange rate – AUD/NZD – is one of the most widely traded cross pairs in the forex market.
- NZD/USD is the abbreviation for the New Zealand dollar and U.S. dollar currency pair.
- Executing a carry trade involves nothing more than buying a high-yielding currency and funding it with a low-yielding currency.
The obverse of each note featured a notable New Zealander, while the reverse featured a native New Zealand bird and New Zealand scenery. 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. In fact, during the 1800s, New Zealand used its coins and banknotes before British currency was even legal currency.
Exchange rate
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. 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.
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. Introduced in 1840, the New Zealand Pound was the first official currency of New Zealand. Until that point, both British and Australian coins circulated in New Zealand, and continued to do so until 1897.
However, New Zealand’s central bank occasionally intervenes in the forex market, selling large quantities of kiwi dollars in order to prevent the currency from increasing further in value. It is a measure frequently undertaken by a country’s central bank in order to keep its export products attractively priced to foreign buyers. The idea of decimalization was first raised in 1933, but was not put into place until 1967, when the New Zealand Dollar replaced the New Zealand Pound. There was much public discussion over what the new currency would be called, with ideas such as ‘kiwi’ and ‘zeal’ being proposed, but in the end, the term ‘dollar’ was chosen. The New Zealand Dollar was initially pegged to the US Dollar at a rate of 1.62 USD to 1 NZD. The peg rate changed multiple times until 1985, when the currency began to freely float in the market.
Because of this, investors will often buy the NZD and fund it with a lower yielding currency such as the Japanese yen or the Swiss franc. New Zealand markets are the first to open a new trading day, and banks and traders may at times use this fact to position trades in anticipation of the coming day’s events. Traders purchase the New Zealand dollar and sell a lower-yielding currency to execute a carry trade, such as the Japanese yen. But the New Zealand carry trade has become much less appealing as the RBNZ has aggressively reduced interest rates to combat slowing economic growth and subdued inflation. 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.
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. As volatility rose, investors unwound these carry trades, and the NZD was one of many high-yielding currencies that fell during 2008 and 2009. On the introduction of the dollar, coins came in denominations of 1c, 2c, 5c, 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.
NZD/USD (New Zealand Dollar/U.S. Dollar) Overview
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 https://www.dowjonesrisk.com/ 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.
The carry trade is one of the most popular trading strategies in the currency market. Executing a carry trade involves nothing more than buying a high-yielding currency and funding it with a low-yielding currency. Altogether it has five coins and five banknotes with the smallest being the 10-cent coin; smaller denominations have been discontinued due to inflation and production costs. NZD is one of the most traded currencies in the world, making it a liquid currency in forex markets.
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. The NZD currency has a long history of colorful and vibrant money and, since its first issuing, has changed its printed design several times. The New Zealand Dollar is the legal currency of the island nation of New Zealand.
Xe International Money Transfer
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 drive down its value. This is the first intervention in the markets by the Bank since the float in 1985. In 1971 the US devalued its dollar relative to gold, leading New Zealand on 23 December to peg its dollar at US$1.216 with a 4.5% fluctuation range, keeping the same gold value. From 9 July 1973 to 4 March 1985 the dollar’s value was determined from a trade-weighted basket of currencies.
However, nothing was made official until 1933, when New Zealand issued their first official coins, based on the British pound, shilling, and pence. The foreign exchange designation for the New Zealand dollar is NZD. The New Zealand dollar and Australian dollar exchange rate – AUD/NZD – is one of the most widely traded cross pairs in the forex market. The New Zealand dollar is considered a carry trade currency in that it is a relatively high yielding currency.