History of New Zealand Coinage

The early years

In early 1840, Captain William Hobson, RN, the first Governor of New Zealand, extended British laws to New Zealand. This meant that certain sections of the Imperial Coinage Act, 1816 (UK) became relevant to the new colony. This allowed for the standard gold, silver and bronze British coins to circulate freely in New Zealand alongside the existing variety of foreign coins. British coins were made legal tender in terms of the above act by the passing of the English Laws Act in 1858.

In the 1840s and 1850s there was an extreme shortage of coins, especially copper coins. Traders tried the issue of low value paper notes to remedy this situation but this was soon abandoned. Instead, as this shortage intensified throughout the 1850s, businesses in Auckland and Dunedin decided to issue their first copper tokens in 1857. In all, 48 traders (mostly retailers) issued their own penny and half-penny tokens. This practice survived until 1881 with their use gradually declining in the 1880s.

In 1897, New Zealand's currency became subject to certain provisions stated in the Imperial Coinage Act, 1870 (UK). This meant that only British coin became the official legal tender coin of the colony. At that time, it was already one of the two ‘common' currencies, along with Australian minted gold sovereign and half sovereign coins.

In 1914, the gradual withdrawal of gold coin from circulation took place.

Silver coin was debased from .925 fine (Sterling Silver) to .500 fine in 1920.

New Zealand introduces its own currency

By 1933, it was obvious that something had to be done about the coin smuggling and the shortage of lower denomination coins in New Zealand. It was decided that New Zealand should start issuing currency from a single bank. The New Zealand Numismatic Society suggested that New Zealand adopt a decimal system of coinage.

However a distinctive New Zealand coinage was introduced in 1933 based on a fractional system (the same as sterling). These new coins used the same weights, sizes and denominations as the British coins. Bronze coins (penny and halfpenny) of British standard were not approved until 22nd December 1939. These were issued in 1940, at the time of the Centennial of New Zealand.

The Coinage Act, 1933 governed the currency, coinage and legal tender in New Zealand, and meant that British coin ceased to be legal tender as at 1st February 1935. New Zealand then became the last and most remote of the self-governing dominions of the British Commonwealth to introduce its own coinage.

The original designs

Half-Crown

Ensigns armorial of the Dominion on their shield (quarterings depicting the Southern Cross, a wheat sheaf, a lamb suspended by a ribbon and mining hammers crossed divided by three ships) surmounted by the Royal Crown and surrounded by ornamentation inspired by Maori carvings

Florin

A kiwi (bird) facing left

Shilling

A figure of a Maori warrior in warlike attitude carrying a taiaha

Sixpence

A huia (bird) perched on a branch

Threepence

Two carved patu (Maori weapons) crossed with lanyards or throngs attached, with "3d" between their blades

Penny

A tui (bird) perched in a setting of yellow kowhai blossoms

Halfpenny

A Maori Hei-tiki (Maori charm) with Maori ornamental scrolls on each side

In 1947 the issue of cupronickel coins replaced .500 fine silver coins. This proclamation was made under Section eight of the Coinage Act, 1933 and signed on 25th August 1947. Both metal types of coins were still considered to be legal tender. This change was due to the rising costs of mining and the price of silver.

Introduction of Decimal Currency

In 1959, a committee was set up to study and report on decimal coinage. This committee was in favour of such an adoption, and after further study, it was announced in 1963 that New Zealand would change to a decimal coinage system.

In 1964, the Decimal Currency Act, 1964 prescribed the designs, diameters, and standard weights of the decimal coins, which first appeared in circulation on 10th July 1967. These coins were all designed by Reginald George James Berry (known as James) of Wellington. His initials (JB) appear on the reverse of all of our then bronze and cupronickel coins.

The word Shilling was included on the 10 cent coin to assist with the transition to decimal currency, it featured on minting of the 10c coin for the years 1967, 1968 and 1969 and was dropped in 1970. The 1968 10 cent coin minting were for collectors sets only.

The coins introduced

New Denomination

Old Denomination

Coin Specification

50 cents

5 shillings or

5/-

(one Crown)

Alloy: Cupronickel

Diameter: 31.75mm

Weight: 13.61gm

Design: The barque Endeavour, commanded by Captain Cook, sailing south, with Mt. Taranaki (Egmont) in the distance under the figure "50"

20 cents

2 shillings or

2/- (one Florin)

Alloy: Cupronickel

Diameter: 28.58mm

Weight: 11.31gm

Design: Kiwi facing right and fern bush with figure "20"

10 cents

1 shilling or

1/- (one Bob)

Alloy: Cupronickel

Diameter: 23.62mm

Weight: 5.66gm

Design: A Maori carved head or koruru under the figure "10" with Maori rafter patterns

5 cents

6 pence or

6d

Alloy: Cupronickel

Diameter: 19.43mm

Weight: 2.83gm

Design: A tuatara curled on a coastal rock on which is superimposed the figure "5". A gull flies in the background

2 cents

3 pence or

3d

Metal: Bronze

Diameter: 21.08mm

Weight: 4.14gm

Design: Two kowhai flowers and leaves surrounding the figure "2"

1 cent

1 penny or

1d

Metal: Bronze

Diameter: 17.53mm

Weight: 2.07gm

Design: A stylised fern leaf enclosing the figure "1"

On the 31st March 1989, the issue of 1 and 2 cent pieces ceased. Both coins were demonetised on the 30th April 1990.

In December 1990, a new 20 cent piece was introduced to replace the old 20 cent piece, as the Kiwi design on the old 20 cent piece was transferred to the new $1 coin. Both designs of the 20 cent coin are legal tender along with the earlier two shilling piece or florin.

20 cents

Alloy: Cupronickel

Diameter: 28.58mm

Weight: 11.31gm

Design: A representation of a well-known Maori "pukaki" carving.

On the 11th February 1991, new $1 and $2 coins were introduced to replace the $1 and $2 notes. These two coins and above 20 cent coin were all designed by Robert Maurice Conly, M.B.E. of Wellington.

$1

Alloy: Aluminium-bronze

Diameter: 23.0mm

Weight: 8.0gm

Design: The kiwi, bringing to reality the colloquial term ‘Kiwi Dollar'.

$2

Alloy: Aluminium-bronze

Diameter: 26.5mm

Weight: 10.0gm

Design: The kotuku (white heron), flying right. The kotuku is one of New Zealand's rarest birds and is held in particularly high regard in Maori mythology.

On the 31st July 2006, the Reserve Bank introduced new smaller and lighter 10, 20 and 50 cent coins made of plated steel. The Bank started withdrawing the corresponding old silver-coloured cupronickel coins at the same time. The 5 cent coin was withdrawn and not replaced. The old coins were demonetised, i.e. declared no longer legal tender, with effect from 1 November 2006.

In 2006, the Reserve Bank ran a public awareness campaign about the new coins that included a website, newcoins.govt.nz. This website was archived in 2012.

Where coins are minted

New Zealand’s $1 and $2 coins are minted by the Royal Mint in the United Kingdom. The 10 cent, 20 cent and 50 cent coins are minted by the Royal Canadian Mint. Other mints the Bank has used over time include: the Royal Australian Mint, Norwegian Mint and the South African Mint Company. For details about the number and value of coin mintages refer to the F4 Coin mintings.

Commemorative Currency

To mark special occasions or to honour people, commemorative coins are produced from time to time by the Reserve Bank and are marketed by NZ Post Limited. These are legal tender coin products, but do not circulate.