A:

The New Zealand currency is known as the New Zealand dollar. The currency was decimalized in 1967, and divided into 100 parts or cents. Before 1967, the currency was called the New Zealand pound. But since its decimalization, it has been called the New Zealand dollar. The currency, affectionately referred to as the Kiwi, trades under the symbol NZD or NZ$.

Since 1999, the New Zealand government has produced polymer or plastic versions of the New Zealand dollar, which has made the note more secure against counterfeiting. In addition, the new polymer composition has increased the longevity of the note. It is estimated that the polymer note lasts four times longer than regular linen or paper notes. Interestingly, the polymer note can go through a washing machine without suffering any material damage. Will other countries around the world follow suit and move their currencies from paper to polymer?

(For more on this topic, see What are the most common currency pairs traded in the forex market?)

RELATED FAQS
  1. Where did the term 'pip' in currency exchange come from?

    Learn the definition of a pip, what it means in the scope of currency exchanges and how to determine its value. Find out ... Read Answer >>
  2. What is the difference between pips, points, and ticks?

    Learn the differences between points, ticks and pips and how each are used by investors to measure price changes in stocks, ... Read Answer >>
  3. What is the value of one pip and why are they different between currency pairs?

    In forex markets, currency trading is done on some of the world's most powerful currencies. The major currencies traded are ... Read Answer >>
  4. Why isn't the EUR/USD currency pair quoted as USD/EUR?

    In a currency pair, the first currency in the pair is called the base currency and the second is called the quote currency. ... Read Answer >>
  5. How is the value of a pip determined?

    Learn how the pip is used in the pricing of a currency pair in forex trading, and see how the foreign exchange market is ... Read Answer >>
Related Articles
  1. Retirement

    Are You Rich Enough to Retire in New Zealand?

    New Zealand is beautiful and welcoming to retirees – but only if they bring a healthy bank account. See how you measure up.
  2. Insights

    Trump-Supporter Peter Thiel Has New Zealand Citizenship

    The controversial investor and Trump advisor seems to have taken a liking to the island country.
  3. Trading

    Top 5 Questions About Currency Trading Answered

    To trade currency successfully, it helps to know the answers to these basic questions.
  4. Investing

    The Top 5 Countries for Dividend Investing (WBK, BBL)

    Read about the five best foreign countries for American dividend investors, based on a ranking of their average after-tax dividends and tax-withholding laws.
  5. Trading

    Top 7 Questions About Currency Trading Answered

    Whether you're puzzled by pips or curious about carry trades, your queries are answered here.
  6. Trading

    8 Basic Forex Market Concepts

    We go over some of the things you need to understand before you can trade currencies.
  7. Trading

    The 6 Most-Traded Currencies And Why They're So Popular

    Every currency has specific features that affect its underlying value and price movements in the forex market.
  8. Trading

    4 Of The Most Popular Traded Currencies

    Every day, trillions of dollars trade in the forex market. Here are a few of the most popular currencies, and some characteristics for each.
  9. Investing

    Bond Spreads: A Leading Indicator For Forex

    Here we examine some telling patterns in the relation between countries' interest rates and their currency pairs.
RELATED TERMS
  1. NZD (New Zealand Dollar)

    The currency abbreviation or currency symbol for the New Zealand ...
  2. Reserve Bank Of New Zealand

    The Reserve Bank of New Zealand is New Zealand's central bank ...
  3. NZD/USD (New Zealand Dollar/U.S. Dollar)

    The abbreviation for the New Zealand dollar and U.S. dollar (NZD/USD) ...
  4. New Zealand Stock Exchange (NZE) .NZ

    The securities market in New Zealand. The New Zealand Stock Exchange ...
  5. NZD

    In the currency market, this is the abbreviation for the New ...
  6. Net Interest Rate Differential

    In international markets, the difference in the interest rates ...
Hot Definitions
  1. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
  2. Portable Alpha

    A strategy in which portfolio managers separate alpha from beta by investing in securities that differ from the market index ...
  3. Run Rate

    1. How the financial performance of a company would look if you were to extrapolate current results out over a certain period ...
  4. Hard Fork

    A hard fork (or sometimes hardfork) is a radical change to the protocol that makes previously invalid blocks/transactions ...
  5. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  6. Ethereum

    Ethereum is a decentralized software platform that enables SmartContracts and Distributed Applications (ĐApps) to be built ...
Trading Center