The New Zealand dollar is the currency and legal tender of New Zealand, the Cook Islands, Niue, the Ross Dependency, Tokelau, and the Pitcairn Islands.
Introduced in 1967, the dollar is subdivided into 100 cents. Altogether there are ten denominations—five coins and five banknotes—with the smallest being the 10-cent coin. There were lower denominations, but those were discontinued due to inflation and production costs.
The New Zealand dollar is consistently one of the 10 most-traded currencies in the world, being approximately 2.0% of global foreign exchange market daily turnover.
Prior to the introduction of the New Zealand dollar in 1967, the New Zealand pound was the currency of New Zealand. The pound used the £ system, in which the pound was divided into 20 shillings and one shilling was divided into 12 pence. But this was considered complicated and cumbersome.
Switching to decimal currency had been proposed in New Zealand since the 1930s but it took until the Decimal Currency Act was passed in 1964 to bring change.
On Monday 10 July 1967, the New Zealand dollar was introduced to replace the pound at a rate of two dollars to one pound.