NZD - New Zealand Dollar

The New Zealand dollar (abbreviated NZD) is nicknamed the Kiwi, is designated with a dollar sign like $ or NZ$, and is the official currency of New Zealand. This island country in the Pacific Ocean is comprised of the North Island and the South Island and many smaller islands.

The New Zealand dollar is also circulated in the Cook Islands, a self-governing democracy associated with New Zealand, as well as in Niue, fifteen hundred miles northeast of New Zealand, Tokelau, a territory of New Zealand and the Pitcairn Islands, a British Overseas Territory.

From 1840 until 1967, the currency of New Zealand was the pound, which was subdivided into twenty shillings each of twelve pence. There was a depression in 1933 in which the pound fell to a value of sixteen shillings sterling but was restored to its original value in 1948. When the government in New Zealand decided to switch to the decimal system, they passed the Decimal Currency Act in 1964, with the transition scheduled to take place in 1967.

At that time, New Zealand’s currency was decimalized and the pound was replaced by the New Zealand dollar that had a rate of two to one pound or ten shillings. When the pound sterling was devalued shortly after, the country took the opportunity to realign the new dollar to the equivalent of the Australian dollar.

The New Zealand dollar is divided into one hundred cents and written with a dollar sign. The reason for its being nicknamed the Kiwi is because kiwis are associated so frequently with New Zealand and because a kiwi is portrayed on the New Zealand dollar coin. The kiwi refers to a flightless bird that is prevalent in New Zealand. Today the New Zealand dollar is one of the world’s ten most traded currencies.

Initially pegged to the United States dollar, the exchange rate was $1.39 US to one New Zealand dollar. It was made into coins of 1, 2, 5, 10, 20 and 50 cents. Notes came in denominations of 1, 2, 5, 10, 20 and 100 dollars. A $50 note was added in 1983, and in 1991 $! And $2 notes were discontinued, being replaced with coins. In 2006 the 5 cent coin was taken out of service, so now the coins consist of 10, 20 and 50 cents and the $1 and $2. Bank notes consist of $5, $10, $20, $50 and $100.