In fact, during the 1800s, New Zealand used its coins and banknotes before British currency was even legal currency. However, nothing was made official until 1933, when New Zealand issued their first official coins, based on the British pound, shilling, and pence. The New Zealand dollar (NZD) is the official currency of New Zealand. NZD is made up of 100 cents and is often represented by the symbol $ or NZ$ to set it apart from other currencies based on dollars. NZD also sees use in the Cook Islands, Niue, Tokelau, and the Pitcairn Islands.

Convert New Zealand Dollar to US Dollar

The performance of Australia’s economy has a significant impact on the New Zealand dollar as a result. The country’s top industries include agriculture, dairy, forestry, fishing, mining, and tourism. New Zealand is one of the world’s largest exporters of whole milk powder so the NZD would most likely benefit if milk prices rise. The kiwi also circulates in Tokelau, Pitcairn Islands, Niue, and the Cook Islands in addition to being the official currency of New Zealand. New Zealand bill denominations include $5, $10, $20, $50, and $100. NZD/USD is the abbreviation for the New Zealand dollar and U.S. dollar currency pair.

How to convert New Zealand dollars to US dollars

NZD/USD is affected by factors that influence the value of the New Zealand dollar and/or the U.S. dollar in relation to each other and other currencies. For this reason, the interest rate differential between the Reserve Bank of New Zealand (RBNZ) and the Federal Reserve (Fed) will affect the value of these currencies when compared to each other. Since 1999, the New Zealand government has produced polymer or plastic versions of the New Zealand dollar, which has made the note more secure against counterfeiting. In addition, the new polymer composition has increased the longevity of the note. The Xe Rate Alerts will let you know when the rate you need is triggered on your selected currency pairs. Bank opening hours in New Zealand vary, but branches are generally open from 9.30am to 4.30pm Monday to Friday.

Tipping and service charges

Polymer bills are estimated to last four times longer than regular linen or paper banknotes. A new series of notes, known as Series 5 was introduced in 1992. The obverse of each note featured a notable New Zealander, while the reverse featured a native New Zealand bird and New Zealand scenery. In 1999, series 6 polymer notes replaced the paper notes. 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.

New Zealand Dollar to

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 oanda review points the exchange rate has been at in the last 30 and 90-day periods. Vehicle hire prices can vary greatly depending on the time of year, the type of car/motorhome you want to hire and how long you are hiring it.

Each banknote and coin of New Zealand’s currency looks different. The currency usually has a bird on one side of a banknote or coin as well as an important historical figure of New Zealand. The strength of a currency tends to fluctuate so the strength of the NZD may not always be so strong. However, overall, NZD is considered a stable currency due to the strength of the New Zealand economy and its outlook.

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. The U.S. dollar is the currency most used in international transactions. Several countries use the U.S. dollar as their official currency, and many others allow it to be used in a de facto capacity. Other factors affecting the NZD are dairy prices and tourism numbers.

The New Zealand Dollar is the currency of New Zealand. Our currency rankings show that the most popular New Zealand Dollar exchange rate is the NZD to USD rate. The currency code for Dollars is NZD, and the currency symbol is $. Below, you’ll find New Zealand Dollar rates and a currency converter. Traders purchase the New Zealand dollar and sell a lower-yielding currency to execute a carry trade, such as the Japanese yen. The objective is to profit from the interest rate differential.

The New Zealand dollar is considered a carry trade currency in that it is a relatively high yielding currency. 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. You can send a variety of international currencies to multiple countries reliably, quickly, and safely, and at a rate cheaper than most banks.

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.

Check live rates, send money securely, set rate alerts, receive notifications and more. These are the average exchange rates of these two currencies for the last 30 and 90 days. The New Zealand government has produced polymer or plastic versions of the New Zealand dollar since 1999. This has made bills more secure against counterfeiting. The polymer composition has also increased the longevity of the banknotes.

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. 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. The Pound banknotes were produced by the six different trading banks until 1924, when a single uniform design was implemented.

Its symbol is usually written as $, and sometimes NZ$ is used to distinguish it from other currencies that use the same sign. Informal nicknames for the New Zealand dollar are ‘kiwi’ and ‘buck’. A kiwi is a bird indigenous to New Zealand and is featured on the $1 coin. They add hidden markups to their exchange rates – charging you more without your knowledge.

New Zealand’s currency is the dollar, more affectionately known as the kiwi. As the country’s central bank, the Reserve Bank of New Zealand (RBNZ) controls most facets of the currency because it sets and monitors exchange and interest rates. It took another 30 years before the Reserve Bank replaced the currency of pounds, shillings, and pence with actual dollars and cents. In the year 1967 alone, the Bank printed 27 million new banknotes and 165 million new coins. 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.

All investment services are provided by the respective Wise Assets entity in your location. The New Zealand dollar also circulates in the Cook Islands, Niue, Tokelau, and the Pitcairn Islands. It is often informally known as the “Kiwi (dollar)” and is divided into 100 cents. So as the number of visitors to New Zealand rises, the economy does well and the currency appreciates.

The 1c and 2c coins were last minted for circulation in 1987, with collector coins being made for 1988. The coins were demonetised on 30 April 1990.[19] The lack of 1c and 2c coins meant that cash transactions were normally rounded to the nearest 5c (10c from 2006), a process known as Swedish rounding. 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.

So if milk prices are on the rise, the New Zealand economy is likely to improve and traders may price up the currency in anticipation. Tourism is another staple of the New Zealand economy, so as visits to New Zealand become less expensive, the economy will be expected to improve and the currency may appreciate. 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.

After a three-month public submission period that ended on 4 February 2005, the Reserve Bank announced on 31 March that it would go ahead with the proposed changes. The changeover period started on 31 July 2006, with the old coins usable until 31 October 2006.[19] The old 50c, 20c, 10c and 5c pieces are now no longer legal tender, but are still redeemable at the Reserve Bank. 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.

1. In addition, the new polymer composition has increased the longevity of the note.
2. A price quote for this currency pair tells the reader how many U.S. dollars are needed to purchase one New Zealand dollar.
3. Several countries use the U.S. dollar as their official currency, and many others allow it to be used in a de facto capacity.
4. New Zealand is one of the world’s largest exporters of whole milk powder so the NZD would most likely benefit if milk prices rise.
5. Executing a carry trade involves nothing more than buying a high-yielding currency and funding it with a low-yielding currency.

A decade later, the Reserve Bank of New Zealand was established. Decimalization of the NZD (division into 100 cents) took place in 1967 when the New Zealand dollar replaced the New Zealand pound 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. Banks often advertise free or low-cost transfers, but add a hidden markup to the exchange rate. Wise gives you the real, mid-market, exchange rate, so you can make huge savings on your international money transfers.

Visitors cannot claim this tax back, but if a supplier ships a major purchase to a visitor’s home address the GST will not be charged. Check the current currency rate with this currency converter. Gross domestic product is a measurement of the value derived from a country’s production of goods and services over a specific period.

Use our Transport finder below to check prices on supplier websites or contact them directly. The price of petrol (gas) can fluctuate daily and may differ slightly between regions. It is always indicated on signs outside petrol stations or at the pump. Prices for accommodation, flights and vehicle hire can fluctuate during busy seasons. The peak times are around Christmas and high summer (December through to early March) across the country, and in winter (June to August) for popular ski areas such as Queenstown and the central North Island.

The New Zealand dollar is considered a carry-trade currency in that it is relatively high-yielding so investors will often buy the NZD and fund it with a lower-yielding currency such as the Japanese yen or the Swiss franc. In 1934, the Reserve Bank of New Zealand was established, becoming the only supplier of banknotes. The original notes had a variety of designs, including that of a kiwi, the nation’s Coat of Arms, Maori King Tawhiao, and Fiordland’s Mitre Peak. You can exchange foreign currency for New Zealand currency at banks, some hotels and Bureau de Change kiosks, which are in international airports and most city centres. Australia ranks as New Zealand’s second-largest trading partner behind China. The neighboring country reports 6.2% of New Zealand imports in 2023.

In 1967, notes were introduced in denominations of $1, $2, $5, $10, $20 and $100, with all except the $5 replacing their pound predecessors. $1 and $2 notes were discontinued in 1991 after being replaced with coins. NZD is one of the most traded currencies in the world, making it a liquid currency in forex markets. New Zealand currency has had a long history of over 160 years.

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. 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. 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.

New Zealand is one of the world’s biggest exporters of whole milk powder. This means that if milk prices are on the rise the New Zealand economy is likely to be doing well, which will push up the currency. During the turbulence in global financial markets during mid to late 2008, the cumulative net long positions held by Japanese margin traders in the NZD fell by nearly 90%.

A floating currency is one with value that is permitted to change as it’s compared to other currencies. Polymer bills can go through a washing machine without suffering any material damage. The Reserve https://forex-reviews.org/coinspot/ Bank of New Zealand (RBNZ) updated the currency in 2015 with even more bright colors and improved security features. In 1986, New Zealand adopted Raphael Maklouf’s new portrait of the Queen.

Automated Teller Machines (ATMs) are available at bank branches, along main shopping streets and in malls. International credit cards and ATM cards will https://forex-reviews.org/ work as long as they have a four-digit PIN encoded. All major credit cards are accepted in New Zealand, with Visa and Mastercard the most widely used.

Federal Reserve (Fed) will affect the value of these currencies when compared to each other. The New Zealand dollar contributes greatly to the total global exchange market—far in excess of New Zealand’s relative share of population or global GDP. The NZD is affectionately referred to as the ‘Kiwi,’ in honor of a flightless bird called a kiwi, which is pictured on one side of the country’s $1 coin. Pricing will depend on the location, time of year, and day of the week, so the below is just to give a general idea of cost. Use our accommodation finder to see price ranges for your specific needs. All goods and services in New Zealand are subject to a Goods and Services Tax (GST) of 15%, which is included in the displayed price.

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.

A price quote for this currency pair tells the reader how many U.S. dollars are needed to purchase one New Zealand dollar. The most recent issue of New Zealand banknotes is the seventh series, first released in October 2015 and May 2016. On 11 November 2004 the Reserve Bank announced that it proposed to take the 5c coin out of circulation and to make the 50c, 20c and 10c coins smaller and use plated steel to make them lighter.