GBP/NZD

The GBP/NZD is the representation of the amount of New Zealand dollars (NZD) that can be purchased for one British pound (GBP) - and it is an important guide for those interested in forex trading, as well as those looking to travel between the two countries.

Both currencies are among the top ten most traded in the world in terms of value.

The monetary systems of the two countries have a long history and it was not until 1933 that the Kiwi currency became distinct from the British pound. The NZD replaced the old New Zealand pound in 1967 and the currency was then floated on March 4th 1985.

After that, the GBP appreciated against the NZD - also known as the Kiwi - until September 2008, when it hit 2.8000.

Now the value of the NZD is very reliant on the prices of agricultural raw materials around the world, as up to 40 per cent of the country's exports are farm produce.

While New Zealand does still contain trade links with the UK, much of its major business comes from neighbouring countries such as Australia and south east Asia.

In terms of the global downturn, New Zealand's economy continues to perform relatively well - although not as robust as Australia's. The employment rate hovers around six per cent, while nominal gross domestic product growth currently stands at an impressive 5.1 per cent.

The New Zealand dollar is seen as a relatively flat currency in forex trading circles, as the country's Reserve Bank rarely intervenes. In June 2007 the Bank sold an unknown amount of currency to keep a cap on its value and this was the only major intervention since the currency was floated on the forex markets.

NZD is also sometimes referred to as NZ$ to distinguish it from other dollar-denominated currencies.