New Zealand dollar
From Wikipedia, the free encyclopedia
| New Zealand dollar | |||||
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| ISO 4217 Code | NZD | ||||
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| User(s) | New Zealand, Cook Islands, Niue, Pitcairn Islands, Tokelau | ||||
| Inflation | 2.6% (New Zealand only) | ||||
| Source | Reserve Bank of New Zealand, December 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 dollar (currency code NZD) is the currency of New Zealand. It also circulates in the Cook Islands (see also Cook Islands dollar), Niue, Tokelau, and the Pitcairn Islands. 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.
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[edit] History
In 1967, the dollar replaced the New Zealand pound at a rate of 2 dollars = 1 pound when the country decimalized its currency. It was initially pegged to the US dollar at a rate of US$1.39 = NZ$1. This rate changed on November 21 of the same year to US$1.12 = NZ$1 after the devaluation of the British pound (see Bretton Woods system) although New Zealand devalued to a greater extent than the U.K.[1]
In 1971, the U.S.A. devalued its dollar relative to gold, leading New Zealand to peg its dollar at a value of US$1.216 with a 4.5% fluctuation range on 23 December (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. Since 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.
[edit] Coins
In 1967, coins were introduced for 1, 2, 5, 10, 20 and 50 cents. The 1 and 2 cent coins were minted in bronze, with the other denominations in cupro-nickel. The 5, 10 and 20 cents were the same size as the earlier, equivalent 6 pence, 1 shilling and 1 florin. Indeed, until 1970, the 10 cents coin bore the additional legend "One Shilling". The obverse designs of all the coins featured Arnold Machin's portrait of 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 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.
In 1986, New Zealand adopted Raphael Maklouf's new portrait of the Queen on all its coins. The 1 and 2 cent coins were last minted for circulation in 1987, with collector coins being made for 1988. The coins were demonetised on 1 May 1990. The lack of 1 and 2 cent coins meant that cash transactions were normally rounded to the nearest 5 cents (10 cents as of 2006), 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 became $4.95 instead of $5.00). Alternatively, many retailers rounded all their prices to the nearest 5 cents to avoid the issue entirely — so a New Zealand shopper often encountered products for sale at prices like $4.95.
In 1990, aluminium-bronze 1 and 2 dollar coins were introduced. In 1999, Ian Rank-Broadley's portrait of the Queen was introduced and the legend rearranged to read NEW ZEALAND ELIZABETH II [date].
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]. It was estimated the changeover would remove nearly five million dollars of foreign coinage from circulation.
| Image | Value | Diameter | Weight | Edge | Design | Issued | Demonetised |
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| 1c | 17.526 mm | Plain | Silver Fern | 1967-1988 | 1990 | ||
| 2c | 21.082 mm | Plain | Kowhai flowers | 1967-1988 | 1990 | ||
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5c | 19.431 mm | 2.83 g | Reeded | Tuatara | 1967-2005 | 2006 |
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10c | 23.62 mm | 5.66 g | Reeded | Māori koruru (carved head) with "One Shilling" | 1967-1969 | 2006 |
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10c | 23.62 mm | 5.66 g | Reeded | Māori koruru (carved head) | 1970-2005 | 2006 |
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10c | 20.50 mm | 3.30 g | Plain | Features a Māori koruru, or carved head. | 2006 | |
| 20c | 28.58 mm | 11.31 g | Reeded | Kiwi | 1967-1989 | 2006 | |
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20c | 28.58 mm | 11.31 g | Reeded | Māori carving of Pukaki, a chief of the Arawa iwi | 1990-2005 | 2006 |
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20c | 21.75 mm | 4.00 g | "Spanish Flower", seven plain sections separated by indents. | Māori carving of Pukaki, a chief of the Arawa iwi | 2006 | |
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50c | 31.75 mm | 13.61 g | Five plain segments separated by reeding | James Cook's HM Bark Endeavour | 1967-2005 | 2006 |
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50c | 24.75 mm | 5.00 g | Plain | James Cook's HM Bark Endeavour | 2006 | |
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$1 | 23 mm | 8 g | Eight equal segments alternating between reeding and plain edge. | Kiwi and Silver Fern. | 1990 | |
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$2 | 26.5 mm | 10 g | Reeded with an indented, plain channel containing ten raised dots. | Kotuku (white heron) | 1990 |
[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] Other coins
- A mule 2 cents coin was issued in 1967, featuring the obverse of the Bahamian 5 cents.
- 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)
- A range of two dollar coins depicting a kingfisher were made during 1993.
- 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.
[edit] Use of other countries' coins
Due to regional travel and the fact that many other former British colonies around the world use coinage systems 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.
[edit] Banknotes
In 1967, notes were introduced by the Reserve Bank of New Zealand in denominations of 1, 2, 5, 10, 20 and 100 dollars. 50 dollar notes were added in 1983, whilst 1 and 2 dollar notes were discontinued in 1991. The first two series of notes (1967-81 and 1981-92) differed only in the portait of the Queen featured on the obverse. The reverses all depicted native birds and plants:
- 1 dollar - Piwakawaka (Rhipidura fulginosa) and New Zealand clematis (Clematis paniculata)
- 2 dollars - Titipounamu (Acanthisitta chloris) and mistletoe (Peraxilla tetrapetala)
- 5 dollars - Tui (Prosthermadera novaeseelandiae) and Kowhai (Sophora microphylla)
- 10 dollars - Kea (Nestor notabilis) and Mount Cook lily (Ranunculus lyallii)
- 20 dollars - Kereru (Hemiphaga novaeseelandiae) and miro (Prumnopitys ferruginea)
- 50 dollars - Morepork (Ninox novaeseelandiae) and pohutukawa (Metrosideros excelsa)
- 100 dollars - Takahe (Porphyrio mantelli) and pekapeka (Celmisia gracilenta)
A new series of notes was introduced from 1992. Except for the 20 dollars, the portrait of the Queen was dropped.
| Image | Value | Obverse | Reverse | |
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$5 | Sir Edmund Hillary | Hoiho |
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$10 | Kate Sheppard | Whio |
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$20 | Queen Elizabeth II | Karearea |
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$50 | Sir Apirana Ngata | Kōkako |
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$100 | Lord Rutherford of Nelson | Mohua |
[edit] Polymer banknotes
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A New Zealand $100 polymer banknote, replacement of the old paper notes. The beige-coloured oval and fern are actually transparent panels. |
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An old paper $100 note. |
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] 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.
[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
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[edit] Trivia
- The $5 note is the only note to have a special object in the bottom left-hand corner.
- The signature of ex NZ Reserve Bank Governor Don Brash still appears on some older notes (Alan Bollard's appears on newer notes).
- The letters "RBNZ" are printed along the bottom of all New Zealand banknotes. They run along specific parts of each note and are only just visible to the naked eye.
[edit] Notes
[edit] External links
- International economics - History of the regulation surrounding the NZ$ 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.
- Reserve bank of New Zealand- Money issuing Authority
- Historical New Zealand Trading bank notes - Old extremely rare banknotes of New Zealand
- New Zealand banknote history
- Legal and economic framework
- Moneyblog.co.nz - A blog about finances and money in New Zealand; comments welcomed
| Preceded by: New Zealand pound Reason: decimalisation Ratio: 2 dollars = 1 pound |
Currency of New Zealand July 10, 1967 – |
Succeeded by: Current |
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| Micronesia | Australian dollar · Kiribati dollar · U.S. dollar |
| Melanesia | Fijian dollar · Indonesian rupiah · Papua New Guinean kina · Solomon Islands dollar · U.S. dollar · Vanuatu vatu |
| Australasia | Australian dollar · New Zealand dollar |
| Polynesia | Australian dollar · New Zealand dollar · Samoan tala · Tongan pa'anga · U.S. dollar |
| French Overseas territories | CFP franc |
