The NZD is the official currency of New Zealand and is also used in the Cook Islands, Niue, Tokelau and the Pitcairn Islands. The currency is subdivided into 100 cents.
The Reserve Bank of New Zealand manages monetary policy for the NZD and issues currency. The New Zealand Dollar is a freely floating currency with a tendency to track movements in the Australian Dollar (AUD).
The NZD was first introduced in 1967, replacing the New Zealand pound at a rate of two dollars to one pound.
During the Global Financial Crisis (GFC) of 2008/2009, the NZD fell sharply against all major currencies as global investor confidence collapsed. However, it quickly recovered as New Zealand’s economy weathered the storm better than most developed countries.
Today, the NZD is one of the ten most traded currencies in the world and is particularly popular with currency traders due to its high liquidity and relatively low interest rates.
The currency is also used as a reserve currency by a number of central banks.
The New Zealand Dollar is also closely linked to the AUD, often moving in tandem with its Aussie neighbour. This is due to the close economic ties between the two countries, with New Zealand being one of Australia‘s largest trading partners.
The currency is used by New Zealanders both domestically and internationally, with around two-thirds of all NZD being held outside of the country.
The New Zealand Dollar is sometimes referred to as the ‘kiwi’, a reference to the native bird of New Zealand.
In honour of the Queen’s Platinum Jubilee celebrations this week, we thought we’d take a look at which other countries (besides the UK) feature portraits