The NZD, like the US Dollar, is made up of 100 cents. Currency is available as both notes and coins. The available denominations are, in decending order:
- 100 Dollar Note
- 50 Dollar Note
- 20 Dollar Note
- 10 Dollar Note
- 5 Dollar Note
- 2 Dollar Coin
- 1 Dollar Coin
- 50 Cent Coin
- 20 Cent Coin
- 10 Cent Coin
- 5 Cent Coin
Prior to specific date in the 80's, one and two cent coins were also legal tender[?], but were withdrawn amid some controversy. However, modern non-cash transactions (such as electronic transactions and cheques) need not be multiples of five cents, and New Zealanders rapidly adapted to the change.
The lack of one and two cent coins means that cash transactions are normally rounded to the nearest five cents. Some larger retailers (Notably, one large supermarket chain), in the interests of public relations implemented a policy of always rounding down to the nearest five cents. Also, a large fraction of retaliers have rounded their prices to five cents - so a New Zealand shopper often encounters products for sale at prices like $4.95.
The value of the New Zealand dollar has been floating, i.e., determined by the financial markets, since March 4, 1985. Since then its value has been in the range of about 0.40 - 0.72 United States dollars, with a particularly low valuation during 2001. From July 9, 1973 until the float its value had been determined from a trade-weighted basket of currencies. Between December 23, 1971 and July 9, 1973 its value was linked to the United States dollar. Before December 23, 1971 it was linked to British sterling.
External links
- Exchange rate regime - http://intl.econ.cuhk.edu.hk/exchange_rate_regime/index.php?cid=35
- NZ dollar vs US dollar (NBNZ) - http://www.nbnz.co.nz/economics/exchange/nzdusd.htm