New Zealand, a serene island country in the South Pacific Ocean, is known for its scenic attractions, natural beauty, and adventures like skydiving, quad biking, and glacier treks. It is one of the most famous travel destinations for backpackers, adventure freaks, and vacationers. If you plan to visit New Zealand, then you must know about the New Zealand Dollar (NZD), the local currency, and the exchange rate between Indian Rupee (INR) and NZD.
New Zealand Dollars - The Present and The History
The New Zealand Dollar is the legal tender of New Zealand and is represented by NZD or NZ$. Each NZD is made up of 100 cents. The common banknote denominations are 5, 10, 20, 50 and 100 NZD. It also has coins of 10 cents, 20 cents, 50 cents, NZ$ 1, and NZ$ 2. Apart from New Zealand, the NZD is used in the Cook Islands, Niue, Tokelau, and the Pitcairn Islands.
The New Zealand currency has a long history of over 160 years. In the 1800s, before the British ruled New Zealand, it used banknotes and coins. However, there wasn't an official currency until 1933, when New Zealand issued its first official coins based on the British Pound, Shilling, and pence, called the New Zealand Pound.
In 1934, the Reserve Bank of New Zealand was established, and it became the sole distributor of New Zealand Pounds (banknotes and coins). However, the system was too complicated as one Pound was divided into 20 shillings, and one Shilling was divided into 12 pence. Hence the proposal to adopt the decimal system of dollars and cents was initiated. However, it took New Zealand another 30 years to move towards the decimal system (Dollars and cents).
In 1967, The Reserve Bank of New Zealand issued the first New Zealand Dollar, which was pegged to the Dollar. In 1985, the peg was removed, and New Zealand adopted the floating exchange rate system. Therefore, the value of the NZD is determined by market forces. This decision has helped the country improve the value of its currency against others, and today, NZD is among the top 15 traded currencies in the world.
Factors affecting New Zealand Currency’s Foreign Exchange Rate
The following factors affect the exchange rate of the New Zealand Dollar:
- Demand and supply of NZD: The demand for and supply of NZD are the major factors that affect the exchange rate. A high demand compared to the supply of NZD will increase its rate against international currencies leading to a currency appreciation. In contrast, low demand and high supply lead to the depreciation of NZD. A country's currency is in demand when the interest rates are high, or inflation is low.
- Current account deficit: If a country has a current account deficit, it means it is spending more foreign currency than it is receiving. To balance the deficit, it must borrow in foreign currency. This means the demand for foreign currency is higher than the domestic currency, which ultimately leads to the depreciation of the domestic currency. At present, New Zealand has a current account deficit of NZD 475 million at the end of December 2022.
- Inflation: A high inflation in a country can lead to depreciation of the currency against the countries with low inflation. This is because the purchasing power parity of domestic countries decreases against other countries.
- Interest rates: Countries tend to increase interest rates to curb inflation. High-interest rates can attract foreign capital, leading to appreciation in the currency.
How to convert INR to NZD?
You can convert INR to NZD manually or through a currency converter. To convert manually, you can divide the value in rupees with the exchange rate (NZD INR). You will then get an equivalent amount in NZD. For example, if you want to convert Rs 300,000 into NZD, you must divide it by the latest exchange rate, which is Rs 52.17 per NZD. By doing so, you will get NZD 5,750 as the answer. This means INR 3 lakhs is equivalent to NZD 5,750.
Converting the currency through a manual method can be a tiring and cumbersome process. Hence you can use a currency converter such as the Jupiter currency converter to save time. To convert INR to NZD, you must select New Zealand Dollar from the dropdown and enter the value in INR. The calculator will automatically display the value in NZD at the latest exchange rate.
INR and NZD Exchange Rate History
Frequently Asked Questions
What Is the full form of NZD?
NZD stands for New Zealand Dollar, which is the legal tender of the island country.
Did New Zealand use British monetary formats, like pounds and Shilling?
Yes, New Zealand’s first official currency was the New Zealand Pound which was in use from 1933 to 1967. However, the British system (Pound, shillings and pence) was very complicated and hence the country shifted to a decimal system and changed its currency to New Zealand Dollar.
Why is NZD also known as the ‘Kiwi’?
The informal name of the New Zealand Dollar is Kiwi. An image of the Kiwi bird is pictured on the NZ$ 1 coin to honour the flightless bird. Hence the name Kiwi.
Is New Zealand currency cheaper than Indian currency?
The exchange rate of NZD to INR is Rs 52.34. This means that to buy one New Zealand Dollar, you will have to pay Rs 52.34. Hence Indian currency is cheaper than New Zealand's currency.
Is NZD waterproof?
Yes, New Zealand Dollars are water-resistant. This is because they are made of polymers and hence are water resistant. However, if the notes get wet, they can stick together, making them difficult to use. Hence, if you ever get the currency wet, dry them separately.
What are documents required to convert INR to NZD?
To convert INR to NZD, you have to provide KYC (know your customer) documents such as a passport, visa, PAN card, and air ticket.
What was the highest price for NZD to INR?
The Indian Rupee depreciated to Rs 53.68, the highest-ever exchange rate on October 2021.
How much NZD can I carry to New Zealand?
You can take as much money as you want to New Zealand. However, if you carry cash of more than $10,000, then you must declare it at customs. Moreover, it is important to remember that as per the Liberalized Remittance Scheme (LRS) of India, the maximum amount you can transfer in a year is USD 250,000. So you can carry an equivalent of this amount in NZD in cash and card from India.
List of supported countries
Common currency conversion values at today’s exchange rate:
Commonly used currency terms are:
1 crore which has 7 zeroes - 1,00,00,000
1 Arab which has 9 zeroes - 1,00,00,00,000
1 Kharab which has 11 zeroes - 1,00,00,00,00,000
1 Neel which has 13 zeroes - 1,00,00,00,00,00,000
1 Padma which has 15 zeroes - 1,00,00,00,00,00,00,000
1 million which has 6 zeroes - 1,000,000 (Ten lakh in Indian common currency terms)
1 billion which has 9 zeroes - 1,000,000,000 (One Arab in Indian common currency terms)