Historical Exchange Rate New Zealand Dollar British Pound
Introduction
The exchange rate between the New Zealand dollar (NZD) and the British pound (GBP) has been fluctuating over the years. It is important to understand the historical trend of this exchange rate to make informed decisions when conducting international transactions between these two currencies.
1970s and 1980s
During the 1970s and 1980s, the exchange rate between the NZD and the GBP remained relatively stable. In 1972, one NZD was equivalent to 0.31 GBP, and by 1989, one NZD was equivalent to 0.36 GBP.
1990s
In the early 1990s, the exchange rate between the NZD and the GBP began to fluctuate. In 1991, one NZD was equivalent to 0.35 GBP, but by 1999, one NZD was equivalent to 0.38 GBP. The NZD experienced a significant devaluation in 1998 due to the Asian financial crisis, which also affected the GBP and other major currencies.
2000s
The exchange rate between the NZD and the GBP was relatively stable in the early 2000s. In 2001, one NZD was equivalent to 0.40 GBP, and by 2009, one NZD was equivalent to 0.46 GBP. However, the global financial crisis in 2008 had a significant impact on the exchange rate between these two currencies.
2010s
In the 2010s, the exchange rate between the NZD and the GBP remained volatile. In 2011, one NZD was equivalent to 0.50 GBP, but by 2016, one NZD was equivalent to 0.47 GBP. The Brexit referendum in 2016 had a significant impact on the GBP, causing it to devalue against many major currencies, including the NZD.
2020s
The exchange rate between the NZD and the GBP has remained volatile in the 2020s due to the COVID-19 pandemic and geopolitical tensions. In 2020, one NZD was equivalent to 0.51 GBP, and by 2021, one NZD was equivalent to 0.53 GBP.
Factors Affecting the Exchange Rate
Several factors can affect the exchange rate between the NZD and the GBP. These include:
- Interest rates: Higher interest rates can attract foreign investors, increasing demand for a currency and causing its value to appreciate.
- Political stability: Political instability can reduce investor confidence, causing a currency to devalue.
- Economic indicators: Economic indicators such as GDP growth, inflation, and employment rates can affect a currency's value.
- Geopolitical tensions: Geopolitical tensions such as trade disputes and military conflicts can affect a currency's value.
Conclusion
The exchange rate between the New Zealand dollar and the British pound has been fluctuating over the years due to various economic and geopolitical factors. It is important to understand the historical trend of this exchange rate to make informed decisions when conducting international transactions between these two currencies.