The coins of the New Zealand dollar are used for the smallest physical currency available in New Zealand. The current denominations are ten cents, twenty cents, fifty cents, one dollar and two dollars. The $1 and $2 coins are minted in a gold colour, the 20c and 50c coins are silver colour and the 10c coin is plated in copper.
Larger denominations of the New Zealand dollar are minted as banknotes of the New Zealand dollar.
History
Pre-dollar
Prior to 10 July 1967, the New Zealand pound, using the £sd system, was the currency of New Zealand. Coins of the pound tend to follow the size, weight, and composition of their British counterparts. The main coins in usage were the halfpenny (d), penny (1d), threepence (3d), sixpence (6d), shilling (1s), florin (2s), and halfcrown (2s 6d).
First coins
Decimalisation of the New Zealand currency occurred on 10 July 1967, when the New Zealand pound was replaced by the New Zealand dollar at a rate of one pound to two dollars (10 shillings to a dollar). On the same day, new decimal coins were introduced to replace the existing pound coins. The first coins of the New Zealand dollar were 1c, 2c, 5c, 10c, 20c, and 50c. The 1c, 2c, and 50c coins were new sizes, with the 1c and 2c minted in bronze, and 50c in cupronickel. The new 5c, 10c, and 20c were the same size, weight, and value as the former sixpence, shilling, and florin coins. Indeed, until 1970, the 10 cents coin bore the additional legend "One Shilling".
The obverse designs of all the coins featured Arnold Machin's portrait of Elizabeth II, with the legend ELIZABETH II NEW ZEALAND [date]. The initial designs for the reverse sides of the coins introduced in 1967 were rejected by the Royal Mint. Several more designs were produced, followed by a vigorous public debate. James Berry's designs were eventually accepted for most of the coins, although he was asked to rework his design for the 5c coin and Francis Shurrock's design for the 10c coin.
In 1986, the portrait of Elizabeth II on New Zealand coins was changed to Raphael Maklouf's new portrait of the Queen.
Removal of 1 and 2 cent coins
Towards the end of the 1980s, the 1c and 2c were becoming of little value, and it was decided to withdraw these coins from circulation. The last coins of these denominations were minted for circulation in 1987, with collector coins being made for 1988. The coins were slowly withdrawn from circulation, before finally being demonetised (no longer legal tender) on 1 May 1990.
After the withdrawal of these coins, cash transactions were normally rounded to the nearest 5 cents, a process known as Swedish rounding. Some larger retailers, in the interests of public relations, elected to round the total price down (so that became instead of ). Alternatively, many retailers rounded all their prices to the nearest 5 cents to avoid the issue entirely—so a New Zealand shopper often encountered products for sale at prices like .
Introduction of 1 and 2 dollar coins
On 11 February 1991, $1 and $2 coins were introduced to replace the $1 and $2 notes in circulation. These coins were minted in aluminium bronze, and were the first New Zealand coins to be minted to metric specifications.
At the same time, because the new $1 coin depicted a kiwi, the 20c coin reverse design was changed. The new 20c coins depicted a Māori carving of Pukaki, a chief of the Ngati Whakaue iwi. Coins with kiwi design, however, outnumbered coins with the new design until they were replaced with the new 20c coins, all depicting the later design, in 2006.
In 1999, Ian Rank-Broadley's portrait of the Queen was introduced and the legend rearranged to read NEW ZEALAND ELIZABETH II [date].
Change to smaller coins
On 11 November 2004, the Reserve Bank announced that it proposed to take the 5c coin out of circulation, and to make the existing 50, 20 and 10c coins smaller and use plated steel to make them lighter. The reasons given were: