Welcome to New Zealand

 

 

 

 

 

New Zealand Currency

 

New Zealand Currency

The currency of New Zealand is the New Zealand dollar. It is also used in Niue, the Cook Islands, the Pitcairn Islands, and Tokelau. The New Zealand dollar is divided into a hundred cents. To set it apart from other dollar-named currencies, the New Zealand dollar is written as NZ$. Informally, it is called the Kiwi dollar since “kiwi” is a word which is closely associated with New Zealand.

New Zealand Currency

 

 “Kiwi” is a common name used for 5 flightless species of birds in New Zealand.

A NZ$1 coin has a kiwi on it. The New Zealand dollar is among the 12 most traded world currencies.
In 1967 , on July 10, the New Zealand pound was replaced by the New Zealand dollar when the New Zealand currency was decimalized at a rate of 1 = NZ$2. Initially, the NZ$ was pegged to the US dollar at NZ$1 = US$1.39.


On November 21 of the same year, the rate changed to NZ$1 = US$1.12. This was after the British pound devaluated although the UK devalued less than New Zealand.

 

The New Zealand dollar floated on March 4, 1985 at the beginning rate of US$0.4444. Since this time the New Zealand dollar's rate has been defined by the financial markets, and is within the range of approximately US$0.39-0.82.

The value of the New Zealand dollar is often strongly influenced by trading in currency and is one of the top most-traded currencies in the world.
 

In a sense, the New Zealand dollar is not a “true dollar”. This is because the New Zealand dollar descends directly from a former Spanish gold coin, “pieces of eight”. Such is not the situation with the Canadian dollar, the United States dollar, and the East Caribbean Dollar.
Essentially, the New Zealand dollar is the equivalent of a half pound sterling. Following the footsteps of Australia and South Africa, New Zealand when it mad use of the decimal system, it opted to adopt the half pound unit of account instead of that of the pound unit.

 

New Zealand’s choice of the name “dollar” is because the lower value of the new currency was closer to the United States dollar that it did the United Kingdom’s pound sterling.


Currency New Zealand

There are other currencies worldwide that are also considered not “true dollars”, precisely for the same reasons mentioned above.

These are the Australian dollar, the Cayman Islands dollar, the Solomon Islands dollar, the Jamaican dollar, the Namibian dollar, the Fiji dollar, the Zimbabwe dollar, and the Rhodesian dollar.

 

The countries of the world that use dollars which are directly descended from the authentic Spanish dollar currency are the Canadian dollar, United States dollar, the Newfoundland dollar, the Belize dollar, the East Caribbean dollar, the Guyanese dollar, the Bahamian dollar, the Bermuda dollar, the Barbados dollar, the Trinidad and Tobago dollar, the Hong Kong dollar, the Malayan dollar, the Straits dollar, the Brunei dollar, and the Singapore dollar.
As of 2006, the exchange is 1.5 New Zealand dollar = 1 United States dollar.
 

 

  

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