New Zealand Dollar To Canadian Dollar Exchange Rate History
The New Zealand dollar (NZD) and the Canadian dollar (CAD) are both popular currencies in the foreign exchange market. The exchange rate between the two currencies has fluctuated over the years, reflecting changes in economic conditions and political events.
Early History
The New Zealand dollar was first introduced in 1967, replacing the New Zealand pound. The Canadian dollar, on the other hand, has a much longer history, dating back to the early 19th century. At the time, the Canadian dollar was tied to the value of the British pound. In 1858, Canada established its own currency, which was initially called the Canadian pound.
1970s and 1980s
The 1970s and 1980s were a period of volatility for the NZD/CAD exchange rate. In the early 1970s, the price of oil skyrocketed, leading to inflation and economic turmoil in both countries. This led to a depreciation of both currencies, with the NZD falling to a low of CAD 0.42 in 1976.
In the 1980s, both countries implemented policies to curb inflation, which had the effect of strengthening their respective currencies. By 1985, the NZD/CAD exchange rate had risen to CAD 0.97.
1990s and 2000s
The 1990s and 2000s were characterized by relative stability in the NZD/CAD exchange rate. In the 1990s, both countries experienced moderate economic growth and low inflation, which helped to keep their currencies relatively stable.
In the early 2000s, the NZD began to appreciate against the CAD, reaching a high of CAD 1.23 in 2007. This was due in part to strong economic growth in New Zealand, driven by a booming housing market and a high demand for dairy products.
Global Financial Crisis
The global financial crisis of 2008 had a significant impact on the NZD/CAD exchange rate. Both countries were affected by the downturn, with New Zealand experiencing a recession and Canada narrowly avoiding one.
The NZD initially fell sharply against the CAD, reaching a low of CAD 0.63 in late 2008. However, as the global economy began to recover, the NZD gradually appreciated against the CAD, reaching a high of CAD 0.94 in 2011.
Recent Years
In recent years, the NZD/CAD exchange rate has continued to fluctuate in response to changes in economic conditions and political events. In 2015, the NZD fell sharply against the CAD due to a decline in dairy prices, which are a major export for New Zealand.
More recently, the COVID-19 pandemic has had a significant impact on both countries, leading to a depreciation of both currencies. As of August 2021, the NZD/CAD exchange rate stands at around CAD 0.87.
Conclusion
The NZD/CAD exchange rate has a long and varied history, reflecting changes in economic conditions and political events. While both currencies have experienced periods of volatility, they have also shown resilience in the face of economic challenges. As the global economy continues to evolve, it is likely that the NZD/CAD exchange rate will continue to fluctuate, reflecting the changing fortunes of these two important currencies.