DEFINITION of 'VUV (Vanuatu Vatu)'
The currency abbreviation for the Vanuatu vatu (VUV), the currency for Vanuatu. The Vanuatu vatu has no subunit, and is often presented with the symbol Vt. Vanuatan residents refer to a notional dollar that equals 100 vatu, which comes from the period of 1966 to 1973 when the New Hebrides franc (the currency at the time) was pegged to the Australian dollar (AUD) at a rate of 100 francs to 1 Australian dollar.
BREAKING DOWN 'VUV (Vanuatu Vatu)'
The vatu was first introduced to replace the New Hebrides franc at par after Vanuatu claimed its independence. After this replacement, the Australian dollar (on which the franc was valued) was no longer accepted as a currency in the nation.