New Zealand Dollar: History & Popularity

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New Zealand is mostly known for the Rugby sport with its national team called All Blacks and their iconic black jersey. This small sovereign island has shown remarkable economic development and with its official currency NZD, the citizens are able to trade in the foreign exchange market. The New Zealand dollar (NZD) is symbolized by NZ$ or $ and made up of 100 cents differing it to other currencies. This NZ$ is among the tenth most global tradable currencies and is accepted by many fields.

 

Fields Accepting NZD

 

 

  • E-Commerce

 

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E-commerce has increased not only in New Zealand but also around the whole world. This new kind of commerce allows the Kiwis to sell and purchase internationally without moving the comfort of their own home. Thus, the Kiwi dollar is their solution for every online business. According to the survey, e-commerce has shown a rise compared to the previous years and New Zealand is the leading country in Oceania to opt for e-commerce. 

 

Trading online is completely integrated into this country and many platforms are available to enable New Zealanders to sell or purchase goods. What’s more, using a smartphone is a trend and million online shoppers have sold and purchased via their mobile devices.

 

 

  • Gambling

 

The gambling sector has also gained in popularity in New Zealand and today, people prefer spending time in an online casino than having fun in other activities. With the growth of online casinos that accept NZ dollars and offer various high-quality games, choosing reliable payment methods is paramount. 

 

In this country, the best online casinos always look for innovations to provide a superb gaming experience to their customers. Hence, those who open an account in the virtual casino are able to use their preferred payment options when they make a deposit or withdrawal. Actually, the online casinos that accept New Zealand dollar are usually well-reputed to offer the most renowned payment options to transfer money.

 

 

  • Forex

 

 

Foreign exchange or forex means a decentralized global market that trades all the currencies in the world. If you take a trip to New Zealand, you have to convert your currency into NZ$. Since 1999, the note to secure more this Kiwi dollar was implemented so that it represents around 2% of the global exchange market. 

 

This currency does not link to gold or precious metals and depends on the circulation’s amount of money. The main factors to increase the value of NZD are the growth of the tourism sector and the milk powder exportation. This means the economy rise in this territory giving an impact on the value of the New Zealand Dollar.

 

History

 

New Zealand currency was released in the 1800s and before the legalization of the British currency. Nonetheless, their coins and banknotes were not made official until 1933. These official coins are based on the British pound with the pictures of the birds existed in New Zealand and the British monarch. In 1967, the NZ bank launched 27 million new banknotes and 165 million new coins. 

 

The New Zealand Dollar is subdivided into 100 cents with ten denominations including five banknotes and five coins. The lowest is the 10-cent coin whereas the highest value is 100 dollar note. In 1992, the Queen Elizabeth images in the banknotes were changed by the famous personalities there. Then, in 1999, the government in New Zealand improved and reinforced the security of their currency by producing plastic or polymer versions of the NZ$. The currency was updated in 2016 with more bright colours and enhanced features.

 

Place in the international economy

 

After the recession of New Zealand in 2008 and 2009, the country has shown a remarkable economy increase in 2010 with an average annual growth rate of 2.1%. Thanks to the fertile soil bundled with the advanced farming and agricultural methods, New Zealand ranks among top five dairy exporters in the world. What’s more, as stated above, with the tourism growth and the improvement in terms of trade, the New Zealand inflation rate in 2017 rises to 2.7%. In 2019, the government forecasts the average increase of 3.6%.