Foreign Exchange Guide to Pitcairn
In this guide we review :
- New Zealand dollar info - general info about the New Zealand dollar
- New Zealand dollar in the markets - recent NZD moves and predictions from the FX markets
- Buying New Zealand dollar cash online - travel money for Pitcairn
- Sending money to Pitcairn - save on New Zealand dollar bank transfers to Pitcairn
- New Zealand dollar exchange rates - latest info & charts.
New Zealand dollar (NZD) general currency information
The New Zealand dollar is informally called the ‘kiwi’ by foreign exchange traders and analysts due to the kiwi bird, which is native to New Zealand, being something of a national symbol for the country. The kiwi bird is also depicted on New Zealand’s one-dollar coin.
Although the New Zealand dollar is considered one of the eight FX ‘majors’, it is actually only the world’s eleventh most traded currency. Apart from the other seven majors – the US dollar, euro, yen, pound, Australian dollar, Canadian dollar and Swiss franc – the New Zealand dollar’s share of the foreign exchange market (around 2%) also falls behind that of the Mexican peso, the Chinese yuan and the Swedish krona. The currencies of China and Mexico are not considered majors due to their emerging market status, while the krona’s share of the market has only exceeded that of the New Zealand dollar fairly recently (in 2016, according to the Bank for International Settlements) and so is not yet considered ahead of New Zealand’s currency.
In the past two decades, the New Zealand dollar’s lowest value against the US dollar occurred in October 2000 when the NZD/USD exchange rate traded at just 0.3901. The currency’s two-decade high occurred in August 2011 when NZD/USD reached 0.8842, although it could be said that this high valuation was achieved twice, because in July 2014 the exchange rate reached 0.8836, just several pips shy of that achieved in 2011.
Among the majors, the New Zealand dollar is considered a riskier currency, which means that its value will fall against the larger majors (especially JPY, USD, CHF, GBP and EUR) during periods of economic uncertainty or when global geopolitical risk is elevated, or during bouts of high market volatility.
New Zealand dollar (NZD) in the markets
It was a game of two halves for the New Zealand dollar in 2017. The currency gained more than 9% against the US dollar by late July, climbing to rates above 0.755, but had given back 80% of those gains approaching year-end, at rates close to 0.705. The New Zealand dollar struggled in the second half of the year as central banks around the world became far more hawkish than the RBNZ. The result of October’s general election – a win for the Jacinda Ardern led Labour party – also weighed on the “kiwi” later in the year.
ABN Amro are, overall, predicting a relatively stable 2018 for NZD as the RBNZ moves slowly towards monetary tightening, although the Dutch bank’s analysts are expecting the currency to continue to underperform slightly against the currencies of important trading partners.
ABN sees NZD/USD falling in the coming year to 0.675. For NZD/AUD and NZD/EUR, ABN expects 2018 year-end rates of 0.9 and 0.587 respectively, from rates in December ’17 close to 0.91 and 0.595.
Pitcairn Trip Checklist
Travel money for Pitcairn
Save money and time by Ordering your New Zealand dollar online from Travelex, you get better rates and can pick up the NZD cash locally or even on travel day at the airport.
Another popular option is to use a Pre-paid Travel Card. Your Debit/Credit Card provider will charge you 2% from market mid-rate, but your bank may also charge an extra 3% as an “Overseas Transaction Charge” plus “Overseas ATM” fees for withdrawing cash.
For card purchases if offered a choice of currencies always select to Pay in New Zealand dollar otherwise you may get much worst exchange rates.
Sending money to Pitcairn
When sending money to Pitcairn it’s important to compare your bank’s rates & fees with those we have negotiated with our partner money transfer providers. To get a better deal you should follow these 3 simple steps :
- Open an account with a BER reviewed FX provider (id docs may be required)
- You specify the local or New Zealand dollar amount you want to transfer
- Make a local currency domestic transfer for the requested amount to the provider's bank account in your country
- Once your funds are received by the provider the converted NZD amount will be transfered to the recipient account you specify in Pitcairn.
By comparing the rates of FX specialist providers rates versus your bank's standard rates you can hopefully save around 5% and maybe more - end result is more New Zealand dollar deposited into the recipient bank account in Pitcairn and less margins and fees kept by the banks!