New Zealand dollar. History of the currency

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The New Zealand dollar is a monetary unit, which is a legally established payment instrument in a number of states and territories at once. These include New Zealand, the Cook Islands, Tokelau, Niue and Pitcairn. According to the adopted international standard ISO 4217, the New Zealand dollar is assigned the digital designation 554 and the letter NZD. In addition, the officially accepted abbreviation of the NZ$ banknote is used, which is located before writing the amount.

History of the currency

The use of the New Zealand dollar as a currency dates back to 1967. It was then that it was put into circulation. Initially, the ratio of the new currency and the New Zealand pound, which was used in trading operations until 1967, was one to two. It would be opportune to say that the New Zealand dollar is sold in a volume that is only slightly inferior in this indicator to its colleague from Australia. This is facilitated by the high activity of New Zealand in world markets, as well as the close cooperation of the state in trade and political spheres with many countries of the rest of the world. In addition, the demand and quotes of the New Zealand dollar are greatly influenced byis provided by the agricultural and raw materials conjuncture.

New Zealand for most of its history in the monetary and commodity sphere depended on its metropolis of Great Britain and, accordingly, on the currency strategy, first of the Royal Mint, and then of the Bank of England. Only from the middle of the 19th century on the islands was the process of gaining independence and the possibility of self-government started. Nevertheless, it was not until 1907 that the question of introducing their own currency was first raised. It was the New Zealand pound, which was put into circulation instead of the British pound and Australian coins. A similar monetary policy lasted 60 years, when the country's leadership decided to switch to the use of the New Zealand dollar. The new currency was not backed by the British currency. In addition, a decimal system has been introduced.

Emission. Currency denominations

Today, there are cash denominations of 5, 10, 20, 50 and 100 dollars. In addition, the New Zealand dollar is used in circulation in the form of coins in denominations of 1 and 2 dollars, as well as 10, 20 and 50 cents. The Reserve Bank of New Zealand has the right to issue New Zealand currency into circulation. An interesting fact is that since 1999 the issue of bank banknotes has been made not on paper, but on a polypropylene basis. That is, in the same way as in Australia. This technology allows you to increase the durability of banknotes and protect them from damage of a different nature.

Design of banknotes and coins

The main symbol of the state of New Zealand is the kiwi bird, which is widely represented on banknotes and coins. At the same time, almost all coins are made with a printed portrait of Queen Elizabeth II of Great Britain. This is due to the fact that the form of government in New Zealand is a parliamentary monarchy. It would be appropriate to say that the New Zealand dollar has a very beautiful design, which is rightly called one of the most attractive currencies in existence. In addition, it is very informative and contains presentations of the rich culture and nature of the country. It should also be emphasized that, like on Australian dollar bills, New Zealand banknotes depict portraits of cultural and historical figures who had a significant impact on the formation and development of a young state and nation.

New Zealand dollar exchange rate

It should be noted that the banknotes of the island nation are one of the first world currencies without a strictly fixed exchange rate. Initially, the US dollar had the greatest influence on the quotation of the monetary unit. On the one hand, this was due to close trade and economic cooperation between the two countries, on the other hand, it was due to the borrowing of management principles and methods of industrial development from the United States. To date, the exchange rate of the New Zealand dollar primarily depends on the export ratio in agriculture, fisheries, and industryprocessing of seafood. In addition, such sectors of the economy as the forestry and woodworking industries have a significant impact on the national currency. New Zealand's main trading partners are Australia, the US, Japan and China. It would be opportune to emphasize that about 70% of exports are realized in accordance with the agreements that were reached within the framework of the Asia-Pacific Economic Cooperation. This is due to the agreements on the need for the development of the region. The New Zealand dollar to the ruble has a rate of approximately 0.02 to 1.

Features of the formation of the value of the New Zealand currency

At the same time, the foreign economic activity of the New Zealand government is not aimed only at developing relations with APEC. Along with cooperation with the countries of the Pacific region, the state is building mutually beneficial ties with the European Union and the Middle East. The main attention is paid to increasing the volume of export deliveries to these states and associations. It should be noted that due to the highly developed mining industry of New Zealand, the country is sufficiently provided with raw materials and energy resources. There is a need to import oil, the production of which is decreasing every year. In all other respects, New Zealand is a self-sufficient country. The export earnings of local producers are practically independent of world oil prices, so the New Zealand dollar has a stable position against the ruble.

Taking into account the above features of the economy and the national economy of New Zealand, as well as the country's focus on exporting itsproducts, it is possible to predict with a high degree of probability in the short term the exchange rate that the New Zealand dollar will have against the major world currencies. First of all, the quotes of the national currency of New Zealand in the world financial markets are influenced by the situation in the agricultural market and weather conditions in the region.

New Zealand commemorative coins

In conclusion, it should be noted that today commemorative coins issued by the Reserve Bank of New Zealand are presented on the numismatic market. Where to buy a New Zealand dollar for your collection? It is not difficult to find such coins today. Silver New Zealand dollar can be purchased, for example, at the Savings Bank of Russia.