There are numerous instances of people transferring money from the UK to New Zealand as well as in the opposite direction. In 2016, around U.S. $30 million made its way to New Zealand from the UK as remittances. Around U.S. $224 million was sent from New Zealand to the UK in the same year. Trade of goods and services between both regions accounted for over U.S. $2 billion in 2016.
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The Pound Sterling
The oldest currency that is still in circulation, the pound’s use as a unit of currency began in 775 AD. Its use as legal tender is also found in the British Antarctic Territory, South Georgia and the South Sandwich Islands, Isle of Man, Guernsey, Jersey, and Tristan da Cunha.
The pound sterling maintained its position as the world’s most dominant reserve currency for more than a century. However, the region’s economy suffered owing to both the World Wars, after which the pound lost some of its sheen. Now, the pound sterling is the fourth most prominent global reserve currency. It is also the fourth most traded currency internationally. The share of the pound sterling in the global forex market turnover was 12.8% in April 2016.
|Nicknames||Quid, pound, bread, moolah, nicker, bones, |
dough, readies, folding stuff, paper
|Bank notes||GBP 1, GBP 5, GBP 10, GBP 50, GBP 100|
|Coins||1p, 2p, 5p, 10p, 20p, 50p, GBP 1, GBP 2|
The New Zealand Dollar
The New Zealand dollar came into being in 1967. It replaced the New Zealand pound that the country used as legal tender since 1840. Use of the New Zealand dollar is also common in Niue, Tokelau, Pitcairn Islands, and Cook Islands. New Zealand has had a history of releasing banknotes in vibrant colors. Their designs have undergone several transformations.
The global forex market turnover share of the New Zealand dollar was 2.1% in April 2016, making it the world’s 10th most commonly traded currency. In April 2018, the average trading volume of this currency was NZ $198.11 billion.
|Currency symbol||$, NZ$|
|Bank notes||$5, $10, $20, $50, $100|
|Coins||10c, 20c, 50c, $1, $2|
Pound Sterling / New Zealand Dollar Historical Rates
While the UK and New Zealand have maintained strong trade ties over time, the pound sterling has been historically stronger than the New Zealand dollar. However, the GBP/NZD currency pair has experienced considerable volatility since the late 1980s.
In mid 1979, the New Zealand dollar traded at below NZ $2 against the pound sterling. Losing value almost considerably for more than a decade, the New Zealand dollar traded at around NZ $3.7 against the pound sterling in August 1992. Then began a period of near-consistent revival, and the New Zealand dollar traded at around NZ $2.2 against the pound sterling by April 1996. The next few years saw the pound sterling appreciating in value, and it crossed the NZ $3.6 mark again in September 2006.
The New Zealand dollar has risen in value against the pound sterling from late 2001, with some intermittent dips in between. The GBP/NZD currency pair maintained relative stability from late 2010 to mid 2015, after which the New Zealand dollar experienced a slight dip in value again. However, the 2016 Brexit referendum worked in favor of the New Zealand dollar. In October 2016, the New Zealand dollar traded at around NZ $1.7 against the pound sterling.
The Brexit effect did not last long, and the pound sterling went to gain value against the New Zealand dollar again. Its value got close to the NZ $2 mark by November 2017. Since then, the value of the pound sterling has largely hovered between NZ $1.90 and NZ $1.96.
GBP/NZD in the last five years
|GBP 1 =|
|1 July, 2013||NZ $1.9046|
|1 July, 2014||NZ $1.9864|
|1 July, 2015||NZ $2.3700|
|1 July, 2016||NZ $1.8349|
|1 July, 2017||NZ $1.7585|
GBP/NZD in the last five months
|GBP 1 =|
|1 March, 2018||NZ $1.9372|
|1 April, 2018||NZ $1.9573|
|1 May, 2018||NZ $1.9002|
|1 June, 2018||NZ $1.9522|
|1 July, 2018||NZ $1.9254|
What Affects GBP/NZD Rates?
The exchange rate of the pound sterling depends largely on UK’s macroeconomic data that includes the region’s gross domestic product (GDP), inflation, interest rate changes made by the Bank of England, as well as unemployment levels. The New Zealand dollar’s exchange rate, on the other hand, is influenced significantly by the region’s agriculture-based exports in the commodity market. For instance, even predictions of unfavorable long-term weather not suited for agriculture can have an adverse effect on the value of the New Zealand dollar.
Given the trade relations between New Zealand and Australia, macroeconomic data of Australia might have an effect on how the GBP/NZD currency pair performs. Changes in monetary policies, investor sentiment, economic growth, and balance of payments are other factors that add to the volatility surrounding the GBP/NZD pair.
If you wish to send money from the UK to New Zealand or from New Zealand to the UK, take a look at the GBP/NZD exchange rate provided by different overseas money transfer companies. It is also important that you consider other factors such as fees, turnaround time, and customer service. To find a service provider that suits your needs perfectly, compare your options well.