Should I exchange money before traveling to New Zealand?

Exchanging a small amount of money before traveling to New Zealand is beneficial for initial expenses. However, it's unnecessary to exchange all funds in advance as competitive exchange rates are available in New Zealand at banks, kiosks, and ATMs. Converting money in New Zealand allows for better rates and avoids carrying large sums of cash. Credit and debit cards can be widely used for transactions, further reducing the need for pre-exchanged currency. Having a small amount of New Zealand Dollars in cash upon arrival is practical, while relying on cards for most expenses is recommended.

Prepaid Travel Money Cards

If you wish to bring a nominal quantity of cash when travelling and want a bit more of a protection against identity fraud, a prepaid travel money card may be just the thing for your holiday.

You can purchase one prior to leaving and load it with the currency you require, then top up online via BPAY while you’re overseas. The cards are obtainable from banks, post offices and travel exchange outlets, and are widely accepted as they are either a Visa or MasterCard. Your bank account is not linked to the card, so the most you can lose is whatever you’ve loaded onto the card.

Swedish Rounding

Due to the discontinuation of 1c, 2c and 5c pieces, purchases made in New Zealand are subject to "rounding" of amounts either up or down. The Reserve Bank believes most retailers are adopting the Swedish Rounding System. Under this system prices, ending in 1 to 4 cents will be rounded down and prices ending in 6 to 9 cents will be rounded up. For example, a purchase of $15.14 would be rounded down to $15.10, and a purchase of $15.16 would be rounded up to $15.20.

It is at the retailer's discretion how they handle prices ending in 5 cents. There has been concern that this will inflate prices, but the Reserve Bank believes competition will restrain price increases and the overall impact on inflation will be minor. Judging from a survey undertaken by The Consumers Institute, when 1 and 2 cent coins were removed, the bank is right, as the survey found prices actually fell slightly.