New Zealand dollar facts for kids

Quick facts for kids New Zealand dollar
$100 banknote, obverse $1 coin, depicting a kiwi on the reverse, from where the currency gets its informal name, the Kiwi dollar
ISO 4217 Code	NZD
User(s)	New Zealand 4 New Zealand dependent territories  Cook Islands  Niue  Tokelau  Ross Dependency 1 British Overseas Territory  Pitcairn Islands
Inflation	3.3% (New Zealand only)
Source	Reserve Bank of New Zealand, June 2024
Pegged by	Cook Islands dollar (historical), Niue dollar and Pitcairn Islands dollar (all at par)
Subunit
1⁄100	cent
Symbol	$
cent	c
Nickname	kiwi
Coins
Freq. used	10c, 20c, 50c, $1, $2
Banknotes
Freq. used	$5, $10, $20, $50, $100
Printer	Note Printing Australia (provides base polymer note material)

The New Zealand dollar (Māori: tāra o Aotearoa) is the official money used in New Zealand. It is also used in the Cook Islands, Niue, the Ross Dependency, Tokelau, and the Pitcairn Islands. People usually use the dollar sign ($) to show it. Outside New Zealand, you might see "$NZ" or "NZ$" to avoid confusion with other types of dollars.

The New Zealand dollar was first used in 1967. It is divided into 100 cents. There are five different coins and five different banknotes. The smallest coin used today is the 10-cent coin. Smaller coins were stopped because of rising prices and the cost to make them.

Sometimes, in money trading, the New Zealand dollar is called the "Kiwi" or "Kiwi dollar." This is because the kiwi, a special flightless bird, is shown on the one-dollar coin. It is one of the top ten most traded currencies in the world.

The Story of the New Zealand Dollar

How the Dollar Started

Before 1967, New Zealand used the New Zealand pound. This was different from the British pound since 1933. The pound system was complicated. It had pounds, shillings, and pence. By the 1950s, people thought it was too hard to use.

People started talking about changing to a simpler decimal money system in the 1930s. In 1957, the government set up a group to study this idea. By 1963, the government decided to make the change. The Decimal Currency Act was passed in 1964. It set the date for the change to 10 July 1967.

Some people suggested names like "fern" or "kiwi" for the new money. They wanted to avoid confusion with the United States dollar. But in the end, "dollar" was chosen. A cartoon character called "Mr. Dollar" helped tell everyone about the change.

On Monday, 10 July 1967, which was called "Decimal Currency Day," the New Zealand dollar officially began. One New Zealand pound became two New Zealand dollars. This meant one dollar was worth ten shillings. About 27 million new banknotes and 165 million new coins were made for this big change.

How the Dollar's Value Changes

When it first started, the New Zealand dollar was linked to both the British pound sterling and the United States dollar. One New Zealand dollar was equal to half a British pound or US$1.40. In November 1967, the British pound lost some of its value. The New Zealand dollar also lost value, going from US$1.40 to US$1.12. This made it match the value of the Australian dollar.

In 1971, the US dollar also lost some value compared to gold. So, New Zealand linked its dollar to US$1.216. From 1973 to 1985, the dollar's value was based on a mix of different currencies.

On 4 March 1985, the New Zealand dollar was allowed to "float." This means its value is now decided by how much people want to buy or sell it in financial markets. Since then, its value has been between about US$0.39 and US$0.88.

The lowest value for the dollar after it started floating was US$0.3922 in November 2000. It reached its highest value of US$0.8821 in July 2014. These changes often happen because of differences in interest rates.

The New Zealand dollar is one of the top 10 most traded currencies in the world. In 2007, the Reserve Bank of New Zealand sold a lot of New Zealand dollars. They did this to try and lower its value. This was the first time they had done such a thing since 1985.

After reaching a very high value in early 2008, the dollar's value dropped a lot. This was due to a worldwide economic problem. Investors moved their money away from "riskier" currencies like the NZ dollar. It hit a low of about US$0.50 in March 2009. But it quickly bounced back, reaching around US$0.75 by November 2009.

By late 2012, the dollar was staying above 80 US cents. Sometimes it even reached 85 cents. Some groups asked the government and the Reserve Bank to take action. But they decided not to. As of late 2019, one New Zealand dollar was worth about US$0.63.

New Zealand Coins

Coin History

Proposed designs for a $1 (10 shilling) coin

When the dollar was introduced, there were 1c, 2c, 5c, 10c, 20c, and 50c coins. The 1c and 2c coins were made of bronze. The others were made of cupro-nickel. To make the change easier, the 5c, 10c, and 20c coins were the same size as the old sixpence, shilling, and florin coins. Until 1970, the 10-cent coin even said "One Shilling" on it.

All the coins showed a picture of Queen Elizabeth II. The first designs for the back of the coins were not used. These designs were leaked to a newspaper and people did not like them. So, the final coins had more traditional designs.

In 1986, a new picture of the Queen was put on the coins. The 1c and 2c coins were last made for everyday use in 1987. They were officially stopped on 30 April 1990. Because these small coins were gone, cash payments were usually rounded to the nearest 5c. After 2006, they were rounded to the nearest 10c.

On 11 February 1991, new $1 and $2 coins were made. These replaced the $1 and $2 banknotes. In 1999, another new picture of the Queen was used on the coins.

In 2004, the Reserve Bank said it wanted to remove the 5c coin. They also wanted to make the 10c, 20c, and 50c coins smaller and lighter. They would use steel covered in other metals. These changes happened on 31 July 2006. The old coins could be used until 31 October 2006. Now, the old 5c, 10c, 20c, and 50c coins are not legal to use. However, you can still exchange them at the Reserve Bank.

Special 50c coins were made in 2015 and 2018. These marked important historical events like the Gallipoli landings and Armistice Day.

Coins You Can Use Today

The reverse designs of the current circulating New Zealand dollar coins. Image by Reserve Bank of New Zealand.

The Future of Coins

After Queen Elizabeth II passed away in September 2022, the Reserve Bank said they will use up all the current coins first. Then, they will make new coins with King Charles III on them. This will likely take several years.

New Zealand Banknotes

Banknote History

In 1967, banknotes were made in $1, $2, $5, $10, $20, and $100 amounts. All except the $5 note replaced older pound notes. The first dollar notes had a picture of Queen Elizabeth II on the front. The back showed native birds and plants. The notes were changed slightly in 1981 because of a new printer. The most obvious change was a different picture of the Queen. The $50 note was added in 1983. This filled the large gap between the $20 and $100 notes. The $1 and $2 notes were stopped in 1991 and replaced by coins.

A new series of notes, called Series 5, came out in 1992. The front of each note showed a famous New Zealander. The back featured a native New Zealand bird and scenery. The Queen stayed on the $20 note. In 1999, plastic notes (called polymer notes) replaced the paper ones. The designs stayed mostly the same but had new safety features, like two clear windows.

In 2015–2016, new Series 7 notes were released. These notes had updated designs and even better security features. As of 2021, both Series 6 and 7 notes are still valid to use.

After Queen Elizabeth II died in September 2022, the Reserve Bank said they will use up all the existing $20 notes. After that, they will print new $20 notes with King Charles III on them.

Banknotes You Can Use Today

The newest New Zealand banknotes are from the seventh series. They were first released in October 2015 and May 2016.

Image	Value	Size	Main Colour		What They Look Like			When They Started
Front Side					Front Side Details	Back Side Details	Watermark
	$5	135 × 66 mm		Orange	Edmund Hillary Aoraki / Mount Cook	Campbell Island scene Hoiho (yellow-eyed penguin) Bulbinella rossii (Ross lily) Pleurophyllum speciosum (Campbell Island daisy) Bull kelp	Elizabeth II	October 2015
	$10	140 × 68 mm		Blue	Kate Sheppard White camellia flowers	River scene Whio (blue duck) Parahebe catarractae Blechnum fern	Elizabeth II	October 2015
	$20	145 × 70 mm		Green	Elizabeth II New Zealand Parliament Buildings	New Zealand alpine scene Kārearea (New Zealand falcon) Marlborough rock daisy Red tussock in flower Mount Tapuae-O-Uenuku	Elizabeth II	May 2016
		Purple	Āpirana Ngata Porourangi Meeting House	Conifer broadleaf forest scene Kōkako (blue wattled crow) Supplejack (kareao) Sky-blue mushroom	Elizabeth II	May 2016
	$100	155 × 74 mm		Red	Ernest Rutherford Nobel Prize medal	Beech forest scene Mohua (yellowhead) Red beech South Island lichen moth	Elizabeth II	May 2016
These images are to scale at 0.7 pixel per millimetre. For table standards, see the banknote specification table. For details of the circulating series 6 designs, see Banknotes of the New Zealand dollar.

How the Dollar is Traded Globally

The Dollar's Place in World Markets

The New Zealand dollar is a very important currency in the global money exchange market. It is traded much more than you might expect for a country of New Zealand's size.

In 2016, the New Zealand dollar was the 11th most traded currency in the world. It made up 2.1% of all daily money trading. This is a big jump from 1998, when it was 17th and only 0.2% of trading. This shows how much more important the New Zealand dollar has become in the world of finance.

Most traded currencies by value
Currency distribution of global foreign exchange market turnover

Rank	Currency	ISO 4217 code (symbol)	% daily share (April 2016)
1	United States dollar	USD ($)	87.6%
2	Euro	EUR (€)	31.4%
3	Japanese yen	JPY (¥)	21.6%
4	Pound sterling	GBP (£)	12.8%
5	Australian dollar	AUD ($)	6.9%
6	Canadian dollar	CAD ($)	5.1%
7	Swiss franc	CHF (Fr)	4.8%
8	Chinese yuan	CNY (¥)	4.0%
9	Swedish krona	SEK (kr)	2.2%
10	New Zealand dollar	NZD ($)	2.1%
11	Mexican peso	MXN ($)	1.9%
12	Singapore dollar	SGD ($)	1.8%
13	Hong Kong dollar	HKD ($)	1.7%
14	Norwegian krone	NOK (kr)	1.7%
15	South Korean won	KRW (₩)	1.7%
16	Turkish lira	TRY (₺)	1.4%
17	Russian ruble	RUB (₽)	1.1%
18	Indian rupee	INR (₹)	1.1%
19	Brazilian real	BRL (R$)	1.0%
20	South African rand	ZAR (R)	1.0%
Other			7.1%
Total Most traded currencies by value Currency distribution of global foreign exchange market turnover Rank Currency ISO 4217 code Symbol or abbreviation Proportion of daily volume, April 2019 Proportion of daily volume, April 2022 1 U.S. dollar USD US$ 88.3% 88.5% 2 Euro EUR € 32.3% 30.5% 3 Japanese yen JPY ¥ / 円 16.8% 16.7% 4 Sterling GBP £ 12.8% 12.9% 5 Renminbi CNY ¥ / 元 4.3% 7.0% 6 Australian dollar AUD A$ 6.8% 6.4% 7 Canadian dollar CAD C$ 5.0% 6.2% 8 Swiss franc CHF CHF 5.0% 5.2% 9 Hong Kong dollar HKD HK$ 3.5% 2.6% 10 Singapore dollar SGD S$ 1.8% 2.4% 11 Swedish krona SEK kr 2.0% 2.2% 12 South Korean won KRW ₩ / 원 2.0% 1.9% 13 Norwegian krone NOK kr 1.8% 1.7% 14 New Zealand dollar NZD NZ$ 2.1% 1.7% 15 Indian rupee INR ₹ 1.7% 1.6% 16 Mexican peso MXN $ 1.7% 1.5% 17 New Taiwan dollar TWD NT$ 0.9% 1.1% 18 South African rand ZAR R 1.1% 1.0% 19 Brazilian real BRL R$ 1.1% 0.9% 20 Danish krone DKK kr 0.6% 0.7% 21 Polish złoty PLN zł 0.6% 0.7% 22 Thai baht THB ฿ 0.5% 0.4% 23 Israeli new shekel ILS ₪ 0.3% 0.4% 24 Indonesian rupiah IDR Rp 0.4% 0.4% 25 Czech koruna CZK Kč 0.4% 0.4% 26 UAE dirham AED د.إ 0.2% 0.4% 27 Turkish lira TRY ₺ 1.1% 0.4% 28 Hungarian forint HUF Ft 0.4% 0.3% 29 Chilean peso CLP CLP$ 0.3% 0.3% 30 Saudi riyal SAR ﷼ 0.2% 0.2% 31 Philippine peso PHP ₱ 0.3% 0.2% 32 Malaysian ringgit MYR RM 0.1% 0.2% 33 Colombian peso COP COL$ 0.2% 0.2% 34 Russian ruble RUB ₽ 1.1% 0.2% 35 Romanian leu RON L 0.1% 0.1% … Other 2.2% 2.5% Total 200.0% 200.0% || style="text-align:right;" | 200.0%

Images for kids

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  The reverse designs of the current circulating New Zealand dollar coins. Image by Reserve Bank of New Zealand.