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Banknotes and coins

Life of a banknote

Learn about the life cycle of our banknotes, from how they are made, sorted and circulated to what happens when they are no longer fit for circulation.

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The journey from design to circulation

Ever wondered how a banknote is born and enters your wallet? Before a New Zealand banknote is circulated, it follows a complex process from design, printing and testing. But banknotes don’t last forever. They get worn and torn. When they’ve reached the end of their life, we take the old notes out of circulation to get recycled.  

Design


Banknote design involves expert input and public feedback on features like images, colour and size. Designers create digital drafts, which are reviewed by specialists to make sure the designs have the right security features, look good and reflect Aotearoa New Zealand’s culture and history.

Learn about the design features of New Zealand's Series 7 banknotes

Sketch of back of $100 New Zealand banknote
The back of the $100 note features the yellowhead (mōhua).

Printing

New Zealand $10 banknote being printed on plastic sheets

New Zealand banknotes are printed on polypropylene which is a type of plastic. This is rolled into reels before being turned into banknote sheets.

To make large sheets, you need equipment we don't have in New Zealand. Which is why our banknotes are printed by the Canadian Bank Note Company in Ottawa, Canada.

Testing

Our banknotes are rigorously tested before entering circulation to make sure they are robust, secure and long-lasting. This includes robust quality control testing in our currency laboratory and cash handling equipment. 

Once they pass the test, the notes are sent to banks and from there, they go into circulation. Notes can stay in circulation for 6 or 7 years.

Microtext security feature
We test the security features of the banknotes, like using a magnifying glass to check the microtext before they go into circulation.

Recycling

Ever wondered what happens to old banknotes?  The answer might surprise you.

New Zealand banknotes are printed on polymer, which is a type of polypropylene plastic.

A New Zealand banknote usually lasts about 6 years before it gets too worn out or damaged to use.

At this point the damaged cash gets taken out of circulation and returned to The Reserve Bank. We put the old notes through a money shredder, so they can’t be used anymore.

The shredded notes then get sent to be processed for recycling.

The shredded cash is loaded into machinery where it is melted, vented and filtered. This process removes the ink and foil, creating plastic pellets, ready to be made into something new.

A lot of the polymer from banknotes is used to make plant pots. Once the notes are in pellet form, they are then melted down, and sometimes mixed in with other plastic from products like food packaging. Then an injection moulding machine is used to create the planter.

These recycled planters then have plants added, before they are sent out to shops to sell all over Aotearoa New Zealand.

Pots made from this material can also be recycled over and over again through consumer returns programmes based in garden centres and hardware stores.

So the next time you’re out buying a plant, you never know - the pot it’s in might literally be made out of money.

Once a banknote is damaged or worn out, it gets taken out of circulation to get recycled. Old notes are shredded and processed into small plastic pellets. These pellets are converted into things like plant pots, that you find at your local hardware or garden store. 

Watch our video to learn more about how our banknotes are recycled.

You can exchange damaged or incomplete banknotes (have pieces missing) which can't be used for payment with us. 

What to do with old or damaged cash  

What is legal tender?