New Zealand dollar

New Zealand dollar

The New Zealand dollar (currency code: NZD, currency symbol: NZ$), issued by the Reserve Bank of New Zealand, the central bank of New Zealand, is the legal tender of New Zealand, the Cook Islands and Niue.

Used since 1967. Usually abbreviated as $, NZ$ or New Zealand dollars. 1 New Zealand dollar is equal to 100 cents (Cents). There are 5, 10, 20, 50, 100 yuan and other banknotes in circulation. There are also 1, 2, 5, 10, 20, 50 cents and 1 yuan and 2 yuan coins. . The name New Zealand currency is used more widely, and the term New Zealand currency is commonly used by overseas Chinese.

Coin maker: Royal Canadian Mint

Before 1840, the currency in circulation in the New Zealand market was mainly British coins, in addition to the coins of France, the Netherlands and other countries. There are few banknotes, usually issued by private banks, and their use is limited to large-value payments.

In 1840, New Zealand’s first Governor declared all coins in circulation in New Zealand at that time legal tender under the Royal Coinage Act of 1816, including various coins made of gold, silver and bronze. In 1870, New Zealand implemented the “Royal Coinage Act”, making the Royal Coinage the official currency. The use of paper money increased during this period.

In 1934, New Zealand established the Reserve Bank to exercise the functions of the central bank and began to issue unified banknotes. The denominations of banknotes are 1, 5 and 10 pounds, and the 20-digit system is implemented. After New Zealand joined the International Monetary Fund in 1961, the gold content of the New Zealand pound was 2.47130 grams. In 1967, a new decimal currency, the New Zealand dollar, was issued with a gold content of 1.23565 grams and was linked to the British pound. After the U.S. dollar was floated in 1971, the New Zealand dollar was pegged to the U.S. dollar. In 1973, when the U.S. dollar depreciated again, the New Zealand government announced that it would abandon the link between the New Zealand dollar and the U.S. dollar, and implement a managed free float, whose effective exchange rate was determined by the basket of currencies of the country’s major trading partners.

In August 1983, the Reserve Bank of New Zealand abolished the practice of setting the dollar exchange rate on a daily basis, allowing the New Zealand dollar to fluctuate with changes in international financial markets. At the end of 1984, almost all foreign exchange controls were lifted. In 1985, New Zealand adopted a flexible exchange rate system, the Reserve Bank of New Zealand stopped quoting the official bid and ask price of the New Zealand dollar, but allowed the central bank to intervene in the market when the market was out of order, and ended the peg to a basket of trade-weighted currencies.