New Zealand dollar
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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.
- 1 Denominations
- 2 Coins and Notes
- 2.1 Lack of 1 and 2 cent coins
- 2.2 Limits on coins allowed to be used
- 2.3 Polymer banknotes
- 2.4 Damaged Notes
- 2.5 Upcoming Changes
Denominations
Currency is available as both notes and coins.Notes
New Zealand notes
| Value | Obverse | Reverse |
|---|---|---|
| 100 Dollars |  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. |
| 50 Dollars |  Features Sir Apirana Ngata, a prominent Māori politician who worked to protect and rejuvenate Māori culture. |  Features a type of kokako, a rare New Zealand bird. |
| 20 Dollars |  Features Queen Elizabeth II, the current Queen of New Zealand and other Commonwealth Realms. |  Features the Karearea, sometimes called the New Zealand Falcon. |
| 10 Dollars |  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. |
| 5 Dollars |  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 the few living peoples who are featured on currency. |  Features the hoiho, or Yellow-eyed Penguin, one of the world's rarest penguin species. |
One and two dollar notes were phased out in 1991 with the introduction of the one and two dollar coins.
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.
Cook Islands banknotes
From 1987 to 1995, the Cook Islands issued their own banknotes in denominations of $3, $10, and $20. There were two design sets, one issued from 1987 to 1991, and one issued from 1992 to 1995. Cook Islanders are showing a preference for New Zealand banknotes, but the Cook Islands notes remain legal tender.It should also be noted that the Cook Islands have been minting their own coins.
| Value | Obverse | Reverse |
|---|---|---|
| 20 Dollars |
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| 10 Dollars |
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| 3 Dollars |
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Coins
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 "silver" coins are 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 the fact that many countries around the world use a British-derived coinage system, many Australian, Fijian and Singaporean coins are in daily circulation in New Zealand (although not being official legal tender). In the case of Australian coins the obverse side is almost the same as New Zealand coins, and a large number of 5, 10, and 20 cent Australian coins are used in New Zealand in an identical manner to their true counterparts. It is of note that the United Kingdom itself does not use these sizes of coins anymore, and there has been the odd case of foreign coins appearing in a customer's change.
Shown below are the reverse designs.
| Value | Design | Introduced | Edge | Diameter | Weight |
|---|---|---|---|---|---|
| 5 Cents |  Features the tuatara, a rare reptile native to New Zealand. | 1967-2006 | 100% milling. | 19.4 mm | 2 g |
| 10 Cents |  Features a Māori koruru, or carved head. | 1967 | 100% milling. | 23.6 mm | 6 g |
| 20 Cents |  Current design features well-known Māori carving depicting Pukaki, a chief of the Arawa iwi. Coins minted before 1990 feature the Kiwi (see below). | 1967 | 100% milling. | 28.6 mm | 10 g |
| 50 Cents |  Features HM Bark Endeavour, the vessel of early explorer James Cook. | 1967 | Five plain segments separated by milling. | 31.8 mm | 14 g |
| 1 Dollar |  Features the Kiwi, New Zealand's national bird. | 1991 | Eight equal segments alternating between milling and plain edge. | 23 mm | 8 g |
| 2 Dollars |  Features the kotuku (white heron), a bird important to Māori mythology, in flight. | 1991 | Milling all around except for an infused channel containing ten raised dots. | 26.5 mm | 10 g |
Coins and Notes
History of Coins and notes
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.
- Halfpenny: Minted from 1940 to 1965. The halfpenny depicts a Maori Tiki on the reverse.
- Penny: Minted from 1940 to 1965. The penny depicts a Tui Bird amongst branches of a Kowhai tree.
- Threepence: Minted from 1933 to 1965. The threepence depicts two carved patu (Maori weapons)
- Sixpence: Minted from 1933 to 1965. The sixpence depicts a huia, an extinct bird.
- Shilling: Minted from 1933 to 1965. The shilling depicts a Maori warrior holding a taiaha.
- Florin: Minted from 1933 to 1965. The florin depicts a kiwi.
- Halfcrown: Minted from 1933 to 1965. The halfcrown depicts an armorial ensign (Containing images of the Southern Cross, a wheat sheaf, a lamb suspended by a rubbon and mining hammers). The armorial is set out on a background of Maori carvings.
- Crown: Minted specifically in years 1935, 1949 and 1953 for special occasions. The 1935 issue commemerated the Treaty of Waitangi. The 1949 issue commemerated a royal visit. The 1953 issue commerated the coronation of Queen Elizabeth II
- 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 the 1st May 1990
- Two Cent: Minted from 1967 to 1988. The one 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 the one cent coin, these were were last minted for circulation in 1987, with collector coins being made for 1988. The coins were also demonetised on the 1st May 1990.
- Five Cent: Minted from 1967 to 2006, these coins are set to be discontinued.
- Ten Cent: Minted from 1967 to current day. This coin is set to be reduced in size, and changed from a silverish finish to a bronze finish during 2006.
- Twenty Cent: Minted from 1967 to current day. This coin is set to be reduced in size during 2006. The coin depicts a kiwi with fern leaves in the background, but during 1992 and up to about 1996 a new design with a tiki was released. This new design was discontinued temporarily after it turned out the coin cost more than it's value to make. The tiki design coin was re-established after international costs of the metal alloy dropped.
- Fifty Cent: Minted from 1967 to current day. This coin depicts the sailing ship known as the Endeavour. This coin is set to reduce 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: Takahe
- * 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)
Five dollar coins: Minted sporadically from 1990 onwards. Five dollar coins have never been minted for circulation but specifically for commemerative 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 Fify 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
Ten Shilling Note: Minted from 1934 - 1967. Designs varied
One Pound Note: Minted from 1934 to 1967. Designs varied. Most commonly depicted Captain Cook's ship Endeavour off the East Coast of New Zealand.
Five Pound Note: Minted from 1934 to 1967. Designs varied.
Ten Pound Note: Minted from 1934 to 1967.
Fifty Pound Note: Minted from 1934 to 1967. These notes are extremely rare and fetch a high price for collectors. The note signed by reserve governor T.P Hannah in uncirculated condition could fetch as high as NZ$10,000 according to the official value listing for New Zealand notes and Coins (Some other lesser valued notes signed by Hannah exist).
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.
Lack of 1 and 2 cent 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. 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. However, a shopper can spend less than five cents by using the electronic EFTPOS system, which nearly all retailers provide.
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:[link]- 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
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.
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 useable 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]
Upcoming Changes
On 11 November 2004 the Reserve Bank announced that it proposed to take the 5c coin out of circulation and to make the current 50, 20 and 10 cent coins smaller and use plated steel to make them lighter. The reasons given were:
- The 5c 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 current 50c coin, with a diameter of 3.2 centimetres, is one of the largest coins in circulation worldwide.
- The size of the 10c piece is 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.)
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.
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.
Trivia relating to the banknotes
- The $50 note is the only note featuring a Māori person on the obverse.
- All the names of the birds on the reverse are in Māori, and all begin with a consonant.
- A majority of the banknotes feature males, but the $10 and $20 notes feature women.
- A majority of the banknotes feature deceased people, but the people on the $5 and $20 notes are still alive.
- The $5 note is the only note to have a special object in the bottom left-hand corner.
- The signature of ex NZ Reserve Bank Governor and now Leader of the Opposition, Don Brash still appears on some older notes (Alan Bollard's appears on newer notes).
- Along the bottom of all NZ notes the letters RBNZ can read. It runs along specific parts of each note and is only just visible to the naked eye
External links
- [Reserve Bank of New Zealand] - Government department in charge of monetary policy in New Zealand
- [International economics] - History of the regulation surrounding the NZ$ 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
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