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The New Zealand dollar ( Currency Code '''NZD''') is the Currency of New Zealand , the Cook Islands , Niue , Tokelau , and the Pitcairn Islands since 1967 . It is normally abbreviated with the Dollar Sign '''$''', or alternatively '''NZ$''' to distinguish it from other Dollar -denominated currencies. It is often informally known as the "Kiwi (dollar)" and is divided into 100 Cent s. The New Zealand dollar replaced the New Zealand Pound , when the country Decimalised its currency. DENOMINATIONS Currency is available as both notes and coins. Notes New Zealand notes One and two dollar notes were phased out in 1991 with the introduction of the one and two dollar coins. Millennium $10 note A special millennium version of the $10 note was issued in 2000 . It had security features never used before, and like other New Zealand banknotes, it was made of polymer. Cook Islands banknotes From 1987 to 1995, the Cook Islands issued their own banknotes in denominations of $3, $10, and $20. There were two design sets, one issued from 1987 to 1991, and one issued from 1992 to 1995. Cook Islanders are showing a preference for New Zealand banknotes, but the Cook Islands notes remain legal tender. It should also be noted that the Cook Islands have been minting their own coins. Coins The obverse (front) design of all the coins feature the standard effigy used in the United Kingdom of HM The Queen with the legend ELIZABETH II NEW ZEALAND or since 1999, NEW ZEALAND ELIZABETH II [date . Only some State Decorations And Orders In New Zealand use the abbreviated Latin inscription ELIZABETH II D. G. REG. F. D. (Dei Gratia Regina Fidei Defensor), which means 'Elizabeth the Second, By the Grace of God, Queen, Defender of the Faith'. The sizes and weights of the "silver" coins are identical to the specifications of British Coins prior to the UK's decimalisation. The 50c coin replaced the Crown , the 20c the Florin , the 10c the Shilling and the 5c the Sixpence . This same conversion was used in Australian Coinage . Due to the fact that many countries around the world use a British-derived coinage system, many Australia n, Fiji an and Singapore an coins are in daily circulation in New Zealand (although not being official legal tender). In the case of Australian coins the obverse side is almost the same as New Zealand coins, and a large number of 5, 10, and 20 cent Australian coins are used in New Zealand in an identical manner to their true counterparts. It is of note that the United Kingdom itself has been phasing out these sizes of coins, and there has been the odd case of a British 5p or 10p appearing in a customer's change. Shown below are the reverse designs. COINS AND NOTES Lack of 1 and 2 cent coins Prior to 30 April 1990 one and two cent coins were Legal Tender , but were withdrawn amid some controversy. However, modern non-cash transactions (such as electronic transactions and Cheque s) need not be multiples of five cents, and New Zealanders rapidly adapted to the change. The lack of one and two cent coins means that cash transactions are normally rounded to the nearest five cents. Some larger retailers (notably one supermarket chain), in the interests of public relations, elected to round the total price down (so that $4.99 becomes $4.95 instead of $5.00). Alternatively, many retailers rounded all their prices to the nearest five cents to avoid the issue entirely — so a New Zealand shopper often encounters products for sale at prices like $4.95. However, a shopper can spend less than five cents by using the electronic EFTPOS system, which nearly all retailers provide. Limits on coins allowed to be used According to the Reserve Bank Act 1989 , there are limits on the amount that can be paid for by coins: {Link without Title}
Polymer banknotes New Zealand notes, since 1999 , have been produced as Plastic Polymer Banknotes instead of conventional paper. There was a slight controversy, but this move was mostly met with curiosity by the public. Such polymer notes have many advantages, notably a photocopy can effortlessly be distinguished from the real thing by touch, and many people have been thankful that the notes go though a Washing Machine with no ill effects. The notes are also difficult to tear without the aid of a cutting tool, but will tear more easily than the paper notes if a tear is started. Initial versions of the polymer $5 note had issues with the ink wearing and aging prematurely, but this was rectified in later production runs. The Reserve Bank expects polymer notes to last at least four times as long as the old bank notes. They also have vastly improved security features and are very difficult to counterfeit. Damaged Notes The Reserve Bank accepts all New Zealand currency for payment at face value. This applies to all demonetised or withdrawn currency, however such currency need not be accepted by money changers as this is no longer legal tender. All decimal notes are legal tender except $1 and $2 notes as these have been withdrawn. Damaged notes are still useable so long as they are recognisable. In particular, the legibility of the note's serial numbers is important. The Reserve Bank website notes that as a rule of thumb if there is more than half a bank note they will pay its full value. To receive payment people have to turn in the note to the Reserve Bank in Wellington or any bank. Explaining Currency Upcoming Changes On 11 November 2004 the Reserve Bank announced that it proposed to take the 5c coin out of circulation and to make the current 50, 20 and 10 cent coins smaller and use Plated Steel to make them lighter. The reasons given were: #The 5c coin is now worth less than half what a cent was worth back in 1967, when New Zealand Decimalised its currency. #Surveys had found that 50, 20 and 10 cent coins were too large and could not be easily carried in large quantities. The current 50c coin, with a diameter of 3.2 centimetres, is one of the largest coins in circulation worldwide. #The size of the 10c piece is too close to that of the dollar - so close, in fact, that it has been possible on occasion to put two 10c pieces in a parking meter together and receive a dollar's worth of parking time. (Naturally, this can also backfire and jam the meter.) After a three-month public submission period that ended on 4 February 2005 , the Reserve Bank announced on 31 March it would go ahead with the proposed changes. The changeover period starts on 31 July 2006 , with the old coins usable up until 31 October 2006 . From then on the old style 50, 20 and 10 cent pieces will no longer be legal tender, while the five cents pieces will only be redeemable at the Reserve Bank. In August 2005, the Royal Canadian Mint , who has minted Canadian coins in plated steel in the past, was selected by the Reserve Bank to make the new coins. TIMELINE OF VALUE
TRIVIA RELATING TO THE BANKNOTES
EXTERNAL LINKS
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