Recent trends and developments in currency – 2010/2011

Release date
01/09/2011
Reference
Vol. 74. No. 3. September 2011
Author
Kristin Langwasser
This article reviews trends in the use of currency in New Zealand and reports developments of particular interest. The value of currency in circulation continues to grow, and there was a spike in the demand for cash after an earthquake hit Christchurch, one of New Zealand’s largest cities. Coin demand also increased due to an increase in the Goods and Services Tax (GST) rate. New Zealanders use currency frequently for lower value transactions and are satisfied with its quality. The rate of counterfeiting is low in New Zealand by international standards. To maintain the quality of circulating banknotes, the Reserve Bank continually destroys and replaces ageing banknotes.