Strong NZ Dollar Means More Spending Power for Kiwis

Strong Currency in New ZealandNew Zealand’s strong currency will allow more Kiwis to have a higher spending power when they travel overseas to Australia, the U.K. and other countries.

If you’re planning to spend a vacation abroad, now seems to be the right time to do so. The strength of the New Zealand dollar has mostly gone up against the currencies of each country in the usual top 10 list of Kiwis’ travel destinations.

In Australia, for example, around 1.3 million people from New Zealand spent time in the country for not more than three months in 2016, the Australian Bureau of Statistics said.

Better Value

You might ask how the New Zealand dollar’s strong currency can help you spend more during your vacations. By simply exchanging your cash to the local currency of the country you’re planning to visit, the chances are high of receiving a larger conversion. Take note, however, that foreign exchange rates change over time.

Even if you run short of cash during your trip, No.1 Currency noted that you could ask for an extra amount from a friend or family member and have it sent via money transfer services. The convenience of sending money through online channels is also another option.

Brexit Woes

The U.K.’s decision to leave the European Union indirectly became an advantage to Kiwis, as the British pound sterling declined significantly against the New Zealand dollar in November 2016. That may have changed coming into 2017, although planning a trip to the European country has become relatively more affordable for Kiwis.

Be also aware of how and where you exchange your money. It’s easier and better to exchange them you’re still home to get the best possible rates, as doing so at places like airports almost seems you’re swapping cash for the same amount.

Nobody can ever be certain that the New Zealand dollar will continue to be strong, so it’s probably best to plan your trip while the conversion rate remains high. On the other hand, you can choose to have your travel money converted and set them aside as backup funds.