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Grace Tennet
by on May 12, 2020
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Like many countries around the world, New Zealand has not always used one type of currency but rather it has shifted as time has moved on. Before the dollar, British Pounds were used, this was between 1933 - 1967. But New Zealand became more independent from the British empire and it then adopted its own money. According to this website, Kiwis prefer choosing NZDs over other currencies when playing, and there's a reason for such popularity - stability.

How it began

In 1957, New Zealand set up a group to investigate decimal currency. This process went on until 1963 when the government realized that creating their own cash system was a viable option. In part, this was driven by a small but consistent meat, wool, and dairy market that was rapidly growing at the time.

1960’s

In 1963 the New Zealand government decided to decimalize its currency system and start trading with the Dollars. In 1964 the Decimal Currency Act was approved which was the final step needed before NZ$ was officially introduced on June 10, 1967. Thanks to a high initial evaluation the new Dollar began trading at 2 Dollars equal 1 Pound. Initially, 27 million dollars were printed in notes and 165 million in coins.

Modern times

The New Zealand Dollar is currently used throughout the country as well in its various territories like the Cook Islands, Niue, Tokelau, and the Pitcairn Islands. The reason for this was due to its long-term stability.

The strength of the NZ Dollar has remained largely the same over time with 1 being equal to half a Pound today. This is due to the continued growth of the manufacturing and agricultural sectors across the country. New Zealand is also a world leader in global export which contributes towards the economy further.

Future

With how the various markets are set up within NZ it is likely that this trend of market strength will continue going forward. This will also be aided by the population growth which is estimated to be between 1.5-2.0% percent per year.

The New Zealand Dollar has been a good example of a long term stable currency since its inception and it will likely continue.

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