Editing New Zealand dollar (section)

==History==

===Introduction===

Prior to the introduction of the New Zealand dollar in 1967, the [[New Zealand pound]] was the currency of New Zealand, which had been distinct from the [[pound sterling]] since 1933.<ref>{{cite encyclopedia |last1=Pollock |first1=Kerryn |title=Coins and banknotes - A national currency, 1930s to 1960s |url=https://teara.govt.nz/en/coins-and-banknotes/page-2 |encyclopedia=[[Te Ara: The Encyclopedia of New Zealand]] |access-date=10 May 2020 |date=20 June 2012}}</ref> The pound used the [[£sd]] system, in which the pound was divided into 20 shillings and one shilling was divided into 12 pence, a system which by the 1950s was considered complicated and cumbersome.

[[Decimalisation|Switching to decimal currency]] had been proposed in New Zealand since the 1930s, although only in the 1950s did any plans come to fruition.<ref>{{cite encyclopedia |last1=Pollock |first1=Kerryn |title=Coins and banknotes - Decimal currency, 1960s to 2000s |url=https://teara.govt.nz/en/coins-and-banknotes/page-3 |encyclopedia=Te Ara: The Encyclopedia of New Zealand |access-date=10 May 2020 |date=20 June 2012}}</ref> In 1957, a committee was set up by the Government to investigate decimal currency. The idea fell on fertile ground, and in 1963, the Government decided to decimalise New Zealand currency.<ref name="RBNZexplain">{{cite web |url= http://www.rbnz.govt.nz/notes_and_coins/explaining_currency.pdf |title= Explaining New Zealand's currency |publisher=[[Reserve Bank of New Zealand]] |access-date= 17 August 2010 |url-status= dead |archive-url= https://web.archive.org/web/20130712052241/http://www.rbnz.govt.nz/notes_and_coins/explaining_currency.pdf |archive-date= 12 July 2013}}</ref> The Decimal Currency Act was passed in 1964, setting the date of transition to 10 July 1967.<ref>{{cite web|title=Decimal Currency Act 1964 No 27 (as at 01 February 1990), Public Act Contents – New Zealand Legislation|url=http://www.legislation.govt.nz/act/public/1964/0027/latest/DLM351233.html|website=www.legislation.govt.nz|access-date=6 February 2017|language=en-NZ}}</ref> Words such as "fern", "kiwi" and "zeal" were proposed to avoid confusion with the word "dollar", which many people associate with the [[United States dollar]].<ref name="NZ History">{{cite web|title=New Zealand adopts decimal currency|url=https://nzhistory.govt.nz/nz-adopts-decimal-currency|website=nzhistory.govt.nz|publisher=Ministry for Culture and Heritage|access-date=6 February 2017|date=10 January 2017}}</ref><ref>{{cite web|title=New Zealand dollar|url=http://www.global-exchange.com.au/currencies-of-the-world/new-zealand-dollar|publisher=Global Exchange|access-date=6 February 2017}}</ref> In the end, the word "dollar" was chosen anyway, and an [[Anthropomorphism|anthropomorphic]] dollar note cartoon character called "Mr. Dollar" became the symbol of transition in a huge publicity campaign.<ref>{{cite web | author= The Film Archive | url= http://www.filmarchive.org.nz/sellebration/view.php?id=212 | title= Decimal Currency, Mr. Dollar | access-date= 8 March 2012 | archive-url= https://web.archive.org/web/20120803121122/http://www.filmarchive.org.nz/sellebration/view.php?id=212 | archive-date= 3 August 2012 | url-status= dead}}</ref>

On Monday 10 July 1967 ("Decimal Currency Day"), the New Zealand dollar was introduced to replace the pound at a rate of two dollars to one pound (one dollar to ten shillings, ten cents to one shilling, {{frac|5|6}} cent to a penny).<ref>{{cite book|title=New Zealand official yearbook|date=1967|publisher=New Zealand Department of Statistics|page=1126|volume=72|url=https://books.google.com/books?id=0q4rAQAAIAAJ}}</ref> Some 27 million new banknotes were printed and 165 million new coins were minted for the changeover.<ref name="NZ History" />

===Exchange rate===
The New Zealand dollar was initially pegged to both the British [[pound sterling]] and the [[United States dollar]] at NZ$1 = UK£{{frac|1|2}} = US$1.40. On 21 November 1967 sterling was devalued from UK£1 = US$2.80 to US$2.40 (see [[Bretton Woods system]]), but the New Zealand dollar was devalued even more from NZ$1 = US$1.40 to US$1.12, to match the value of the [[Australian dollar]].<ref name="globalfinancialdata 4017">{{cite web | author= Global Financial Data | url= http://www.globalfinancialdata.com/index.php3?action=detailedinfo&id=4017 | archive-url= https://web.archive.org/web/20070929121127/http://www.globalfinancialdata.com/index.php3?action=detailedinfo&id=4017 | url-status= dead | archive-date= 29 September 2007 | title= New Zealand Dollar (USD per NZD) | access-date= 21 May 2007 }}</ref>

In 1971, the US [[Nixon Shock|devalued]] its dollar [[Gold standard|relative to gold]], leading New Zealand on 23 December 1971 to peg its dollar at US$1.1952, keeping the same gold value.<ref name="ER changes">{{cite web|url=https://www.rbnz.govt.nz/-/media/project/sites/rbnz/files/statistics/series/b/b1/new-zealand-dollar-exchange-rate-changes-before-1985.pdf|title=Exchange rate changes to the New Zealand dollar before it was floated on 4 March 1985|publisher=Reserve Bank of New Zealand|access-date=30 March 2025}}</ref> From 9 July 1973 to 4 March 1985 the dollar's value was determined from a trade-weighted basket of currencies.

On 4 March 1985, the NZ$ [[Floating exchange rate|was floated]] at the initial rate of US$0.4444. Since then, the dollar's value has been determined by the financial markets, and has been in the range of about US$0.39 to 0.88.

The dollar's post-float low was US$0.3922 on 22 November 2000, and it reached a post-float high on 9 July 2014 of US$0.8821. Much of this medium-term variation in the exchange rate has been attributed to differences in interest rates.{{Citation needed|date=March 2008}}

The New Zealand dollar is among the 10 most-traded currencies.<ref name="10th" />

On 11 June 2007, the [[Reserve Bank of New Zealand|Reserve Bank]] sold an unknown worth of New Zealand dollars for nine billion [[United States dollar|USD]] in an attempt to drive down its value. This is the first intervention in the markets by the Bank since the float in 1985.

Two suspected interventions followed, but they were not as successful as the first: the first appeared to be initially effective, with the dollar dropping to approximately US$0.7490 from near US$0.7620. However, within little more than a month it had risen to new post-float highs, reaching US$0.8103 on 23 July 2007.

After reaching its post-float record high in early 2008, the value of the NZ$ plummeted throughout much of the 2nd half of 2008 and the first quarter of 2009 as a response to the global economic downturn and flight by investors away from "riskier" currencies such as the NZ$. The NZ$ bottomed out at approximately US$0.50 on 6 March 2009.<ref name="GOOG">{{cite web |url=https://www.google.com/finance/quote/NZD-USD |title=New Zealand Dollar to United States Dollar |website= Google Finance |access-date=2012-05-23}}</ref> However, it rebounded strongly as the year progressed, reaching the US$0.75 range by November 2009.<ref name="GOOG"/>

By late 2012, the dollar was holding above 80 US cents, occasionally reaching 85¢, prompting calls from [[Green Party of New Zealand|the Green Party]] for [[quantitative easing]].<ref name="3news 271764">{{cite news| url= http://www.3news.co.nz/Greens-call-for-quantitative-easing/tabid/1607/articleID/271764/Default.aspx|work=3 News NZ |title= Greens call for quantitative easing| date=7 October 2012 |url-status=dead |archive-url= https://archive.today/20130413223352/http://www.3news.co.nz/Greens-call-for-quantitative-easing/tabid/1607/articleID/271764/Default.aspx |archive-date= 13 Apr 2013 }}</ref><ref>{{cite news| url= http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10839073|work=[[The New Zealand Herald]] |title= Labour sees merit in Green call to print cash| date=8 October 2012 |first1=Audrey |last1=Young |url-status=live |archive-url=https://web.archive.org/web/20191217150542/http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10839073 |archive-date= 2019-12-17}}</ref> Unions also called on the Government and the [[Reserve Bank of New Zealand|Reserve Bank]] to take action, but as of February 2013 both had declined.<ref name="3news 271782">{{cite news| url= http://www.3news.co.nz/Govt-rejects-call-to-print-money/tabid/1607/articleID/271782/Default.aspx|work=3 News NZ |title= Govt rejects call to print money| date=27 October 2012 |first1= Emma |last1=Jolliff |url-status=dead |archive-url=https://web.archive.org/web/20140718143229/http://www.3news.co.nz/Govt-rejects-call-to-print-money/tabid/1607/articleID/271782/Default.aspx |archive-date= 2014-07-18}}</ref>

As of early June 2017, the NZD was trading at approximately US$0.71, and in early November 2019 it was valued as US$0.63 = NZ$1.<ref name="XE NZD">{{Cite web|url=http://www.xe.com/currencytables/?from=NZD&date=2017-06-01|title = Historical Rates Tables - NZD |website= Xe}}</ref>