Kiwi

DEFINITION of 'Kiwi'

Kiwi is s slang term for the New Zealand dollar (NZD). It derives its name from New Zealand's national icon - a flightless bird called a kiwi - which is pictured on one side of the country's $1 coin.

BREAKING DOWN 'Kiwi'

Kiwi is a popular term in currency trading because New Zealand's currency exchange rate is closely tied to the price/demand of the country's abundant agricultural and forestry products. It is not uncommon to hear a news report say the kiwi is up, or down, in the day's trading.

The term kiwi has moved to the bond market where Kiwi Bonds are a widely traded financial instrument in New Zealand. Kiwi Bonds are fixed-interest rate bonds denominated in New Zealand dollars and are only available to New Zealand residents living in New Zealand. The bonds are quarterly paying. 

The term kiwi will often be used alongside "Aussie," the slang term for the Australian dollar, New Zealand's antipodean neighbor.