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A Brief History of the New Zealand Dollar

Wednesday 29 March 2017, 11:45AM

By Auckland Collectors Centre

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AUCKLAND

Kiwis did not always have the New Zealand Dollar. Before the currency widely adapted now, this part of the world used pounds. The NZ Pound was adapted from the British and it had an odd way of being broken down into smaller denominations: a single NZ Pound is subdivided into 20 shillings; one shilling was equal to 12 pence. 

The history of the New Zealand Pound is interesting, and it is no wonder there are a number of coin dealers in New Zealand. At the halfway point of the century, this kind of subdivision became cumbersome. In the 1950s, plans to replace the currency appeared. Eventually, the plan was put into action. 

To keep up with the rest of the planet, the decimal currency system (where units were divided by 10 or 100) became more attractive. By 1957, a formal government committee was established. This led to the ‘Decimal Currency Act’. 

During the early arguments for a new currency, the ‘dollar’ was not even a frontrunner. For their forthcoming brand new currency, the Kiwis had unique ideas for the name, most of which were inspired by the beautiful New Zealand outdoors. Ideas such as fern, kiwi and seal were considered. Just imagine having New Zealand Ferns, Kiwis or Seals in your wallet. Unfortunately, a less original idea won. 

‘Dollar’ became New Zealand’s new currency despite initial fears of it being confused with its American predecessor. To bolster acceptance of the new currency system, a cartoon nicknamed Mr Dollar entered the national consciousness. This cartoon, which wore the ‘$’ sign as a necktie, introduces Kiwis to their new money. 

World banknote dealers worth their salt have New Zealand Pounds in their collection. You see, bank notes, especially those from years past, do not just carry purchasing power. They also tell stories with their beautiful, intricate and often symbolic designs.