NZ adopts decimal currency

Pounds, shillings and pence were replaced with dollars and cents − 27 million new banknotes and 165 million new coins.

In 1959, a committee of senior public servants and representatives of key sectors of the economy – and the Royal Numismatic Society of New Zealand – agreed in principle to a change to decimal currency after two years of discussions.

Change was in the air. Across the Tasman, Australian Prime Minister Robert Menzies had in 1958 made an election promise to introduce decimal currency.

In 1963 the New Zealand government decided to go ahead and ‘decimalise’. Imperial currency was relatively complex: a pound was divided into 20 shillings and a shilling into 12 pence. People had got used to doing the fractions, but it was complicated - 100 cents to a dollar that was worth 10 shillings of the old money would be simpler. ‘Decimal Currency’ (DC) day was set for 10 July 1967. Australia made the change in February 1966.

In both countries there was public discussion over what to call the new currency. Menzies’ Cabinet’s choice of ‘Royal’ was widely derided. Here ‘Kiwi’ and ‘zeal’ were proposed to avoid confusion with ‘dollar’, which most people associated with America.

In the end, both governments settled on dollar. ‘Mr Dollar’ became the symbol of the transition in New Zealand. Children were urged to become ‘dollar scholars’ and a jingle released in 1966 told people not to ‘shed a tear in July next year for cumbersome pounds and pence’.

Designs for the new New Zealand coins were publicised in early 1966 but revised after being criticised. The notes – the first New Zealand paper money to show the reigning monarch – were kept under wraps until June 1967 to thwart counterfeiters. This was prudent, as forged $10 bills were in circulation in Australia from December 1966. Many workers insisted on being paid in other denominations.

With the changeover 5 shillings (one crown) became 50 cents, 2 shillings (one florin) became 20 cents, 1 shilling (one bob) became 10 cents, 6 pence became 5 cents, 3 pence became 2 cents and a penny became 1 cent.

The old bank notes (10s, £1, £5, £10 and £50) were replaced with dollar notes in these denominations: 1, 2, 5, 10, 20 and 100. A $50 note was introduced in 1981, and in 1990 the $1 and $2 notes were replaced by coins. By 2015 inflation had reduced the value of a New Zealand dollar to less than 1/17th of what it was worth in 1967.

Image: still from decimal currency film (Te Ara)