Search
Close this search box.

Table of Contents

Kiwi



Definition

Kiwi is a colloquial term referring to the New Zealand Dollar (NZD), the official currency of New Zealand. The nickname is derived from the national symbol of New Zealand, the kiwi bird, which is prominently featured on the one-dollar coin. In the foreign exchange market, the term “kiwi” is often used by traders and financial analysts when discussing NZD-related currency pairs or economic events affecting the NZD’s value.

Phonetic

The phonetics of the keyword “Kiwi” are: /ˈkiwi/

Key Takeaways

  1. Kiwi is a flightless bird native to New Zealand, known for its small size, long beak, and fuzzy brown appearance.
  2. Due to their lack of powerful wings, their primary defense mechanism is their strong legs, which allows them to run quickly and dig burrows for protection.
  3. Kiwis are considered to be a national symbol of New Zealand, often used in official emblems and logos, as well as a nickname for New Zealanders themselves.

Importance

The term “Kiwi” is important in the business and finance world because it is a colloquial nickname for the New Zealand Dollar (NZD), the official currency of New Zealand. It derives its name from the kiwi bird, a flightless bird indigenous to the country and a national symbol. In the foreign exchange (forex) market, currency traders and investors use the Kiwi to describe movements of the NZD or assess its performance relative to other major currencies. New Zealand’s economy primarily depends on agriculture and the exporting of goods, making the Kiwi particularly sensitive to changes in global demand and commodity prices. Consequently, understanding and monitoring the Kiwi’s performance is crucial for investors, traders, and businesses engaged in international trade or investment with New Zealand.

Explanation

The term “Kiwi” primarily refers to the national bird of New Zealand, but in the realm of finance and business, it holds a significant meaning as well. In this context, Kiwi denotes the New Zealand Dollar (NZD), which serves as the official currency used in New Zealand and its territories. The nickname for the currency comes from the close association of the island-nation with its emblematic native bird. Investors and traders in the foreign exchange market (forex) frequently use the term “Kiwi” while monitoring the exchange rates, and evaluating the economic health and stability of the New Zealand economy. The main purpose of the Kiwi or NZD, like any currency, is to facilitate trade and transactions within the country and between international trading partners. New Zealand boasts a prosperous economy that largely relies on imports and exports, with major trading partners including countries such as China, the United States, and Australia. The value of Kiwi therefore stands as a vital indicator of economic stability and development for the country. Moreover, monitoring the fluctuations in the currency’s value has direct implications for businesses involved in international trade, investment decisions, and risk management. Additionally, it is crucial for central banks and policymakers in determining monetary policy and establishing exchange rate mechanisms, contributing to the overall financial well-being of the nation and its citizens.

Examples

1. New Zealand Dollar (NZD) – The term “Kiwi” is often used in the world of finance and business to refer to the New Zealand Dollar. It is the official currency of New Zealand, and its shorthand symbol is NZD. The currency’s nickname (Kiwi) is derived from the presence of the kiwi bird, a flightless native bird, on New Zealand’s one-dollar coin. 2. NZD/USD Currency Pair Trading – In foreign exchange (forex) markets, the NZD/USD currency pair is commonly referred to as the “Kiwi.” Traders and investors frequently exchange this pair, which represents the conversion rate of New Zealand dollars into US dollars. Financial analysts and traders use the term Kiwi to discuss trading strategies, market movements, and economic data releases in relation to this currency pair. 3. Kiwi Bonds – The New Zealand Government issues a type of debt security called “Kiwi Bonds.” These bonds are available to New Zealand residents and individual investors, and they help the government fund infrastructure, education, healthcare, and other public works projects. Just as the term Kiwi represents the nation’s currency, it also signifies the financial instrument originating from New Zealand, as seen in these bonds.

Frequently Asked Questions(FAQ)

What does the term “Kiwi” mean in finance and business contexts?
In finance and business, the term “Kiwi” refers to the New Zealand Dollar (NZD), which is the official currency of New Zealand. It can also refer to assets, investments, or securities that are denominated in the New Zealand Dollar.
Why is the New Zealand Dollar called “Kiwi”?
The nickname “Kiwi” comes from New Zealand’s national symbol, the kiwi bird, which is a flightless bird native to the country. The term has become a colloquial way to refer to the country’s currency in financial markets.
How are “Kiwi” currency pairs represented in Forex?
In the foreign exchange market, the New Zealand Dollar is typically represented with the abbreviation “NZD.” It can be paired with other currencies, such as the US dollar (USD/NZD), the Euro (EUR/NZD), and the Australian dollar (AUD/NZD), among others.
What is the role of “Kiwi” in global financial markets?
As the national currency of New Zealand, the Kiwi plays a significant role in the global foreign exchange market. It is also considered one of the “commodity currencies,” as the country’s economy relies heavily on the export of commodities like dairy and agricultural products, as well as tourism.
How does the performance of the New Zealand economy affect the value of “Kiwi”?
The strength of the New Zealand economy, along with factors such as interest rates, inflation, and political stability, can have a significant influence on the value of the Kiwi. Improvements in economic performance and positive indicators can result in an appreciation of the currency, while economic downturns or negative indicators can lead to depreciation.
Where can I trade or exchange “Kiwi” currency?
The New Zealand Dollar (Kiwi) can be traded or exchanged through various platforms, such as banks, currency exchange providers, and Forex trading platforms. It’s essential to compare exchange rates and fees to get the best deal when exchanging or trading the Kiwi.

Related Finance Terms

Sources for More Information


About Our Editorial Process

At Due, we are dedicated to providing simple money and retirement advice that can make a big impact in your life. Our team closely follows market shifts and deeply understands how to build REAL wealth. All of our articles undergo thorough editing and review by financial experts, ensuring you get reliable and credible money advice.

We partner with leading publications, such as Nasdaq, The Globe and Mail, Entrepreneur, and more, to provide insights on retirement, current markets, and more.

We also host a financial glossary of over 7000 money/investing terms to help you learn more about how to take control of your finances.

View our editorial process

About Our Journalists

Our journalists are not just trusted, certified financial advisers. They are experienced and leading influencers in the financial realm, trusted by millions to provide advice about money. We handpick the best of the best, so you get advice from real experts. Our goal is to educate and inform, NOT to be a ‘stock-picker’ or ‘market-caller.’ 

Why listen to what we have to say?

While Due does not know how to predict the market in the short-term, our team of experts DOES know how you can make smart financial decisions to plan for retirement in the long-term.

View our expert review board

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More