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 Tokelau
- Sending money to Tokelau - save on New Zealand dollar bank transfers to Tokelau
- New Zealand dollar exchange rates - latest info & charts.
New Zealand dollar (NZD) general currency information
The three letter currency code for the New Zealand dollar is NZD and the symbol is $. It is the domestic currency in New Zealand, Cook Islands, Niue, Pitcairn and Tokelau.
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
The New Zealand dollar gained handsomely against the Australian dollar between October and mid-April, strengthening by 7% to fetch 0.95 AUD, although the kiwi remains within the central portion of its 2014-2018 trading range against AUD.
Against the US dollar, the New Zealand dollar had rallied at the time of this report to 0.738 and continues to climb steadily towards the highs of its current cycle, roughly between 0.745 and 0.755.
In April, analysts at Saxo Bank questioned whether NZD had the legs to threaten cycle highs given likely unfavourable changes to the NZ-US interest rate differential. US benchmark interest rates have already risen to match New Zealand’s and are expected to overtake them this year. While further US hikes are expected in 2018, no rate hike in New Zealand is expected until mid-2019. Accounting and consulting firm PwC described the NZ-US differential in April as a “massive change in market conditions” that offered a “disincentive to invest in the New Zealand dollar.”
Other threats to the New Zealand dollar include the potential for a US-China trade war, which would threaten global trade and consequently weigh on growth-sensitive currencies like NZD. The kiwi got a boost in the second week of April after Chinese Premier Xi Jinping declined from speaking harshly on Washington’s trade policies at the Boao Forum (“Asia’s Davos”).
The interactive chart below shows the NZD to USD exchange rate for the previous 3 months with rate alerts for days when the exchange rate moved up or down significantly or for 30 day highs and lows.
Tokelau Trip Checklist
- Compare NZD travel cash rates - probably why you are here!
- Lonely Planet - world's best travel guide (coupon and deals)
Travel money for Tokelau
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.
Travel Money Exchange Rates Compared
Buying NZD Cash with USD 1,000
Travelex OnlineSending money to Tokelau
When sending money to Tokelau 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 Tokelau.
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 Tokelau and less margins and fees kept by the banks!
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