New Zealand dollar Currency

Overview of Currency

Description 

Introduced in 1967, the New Zealand dollar serves as the official currency of New Zealand. It is abbreviated with the dollar sign ($), but variations like $NZ or NZ$ are used outside New Zealand to differentiate it from other dollar-denominated currencies. 

The NZD is divided into 100 cents. The New Zealand currency has five coins and five banknotes, with the smallest being the 10-cent coin. However, the smallest denominations have been abandoned because of inflation and production costs. 

Economy 

• New Zealand has a mixed capitalist economy, which is mainly based on a free market system, with private ownership, and market forces deciding prices and wages.
• According to the International Monetary Fund (IMF), New Zealand has a nominal GDP of nearly $262.92 billion. While the GDP is predicted to be $294.56 billion in terms of purchasing power parity. 
• Despite being a large country, the economy of New Zealand is relatively smaller than the major global economies. The country’s GDP in terms of PPP was reported to be $252.18 billion in 2025. 
• The country ranks 52nd largest globally in terms of nominal GDP and 63rd based on purchasing power parity (PPP). 

History 

• The New Zealand Parliament authorized the Decimal Currency Act in 1964, officially changing to the new dollar currency in July 1967.
• Words such as “fern”, “kiwi”, and” zeal” were used to avoid confusion with the word “dollar”, but in the end, the word ” dollar” was chosen.
• The Reserve Bank of the country issues the New Zealand dollar, which has the currency code NZD, denoted as NZ$. 
• Since 1985, the currency of New Zealand has been free-floating. 
• From the first year until 1998, the coin displayed the portrait of Queen Elizabeth II by the British-Palestinian sculptor Raphael Maklouf on its obverse. 
• In 1999, the New Zealand carving on the obverse of the dollar coins was replaced by Ian Rank-Broadley’s portrait of Queen Elizabeth II.
• In the same year, the paper banknotes were replaced with polymer notes to make them more durable and anti-counterfeiting. 

Trivia 

• New Zealand currency is one of the top ten currencies used in trade globally. 
• The currency of New Zealand is commonly called kiwi as it is named after the national bird, which is displayed on the 1-dollar coins. 
• The two-dollar New Zealand coin is the largest and heaviest coin in circulation, weighing 10 grams and measuring 26.5 millimeters in diameter.