floating the dollar

realigned to a new Official Rate of US$1.216 with a 4.5% fluctuation range, with unchanged gold
content.
The currency's link to the Pound Sterling was replaced with a pegging of the New Zealand Dollar to the
U.S. Dollar. An Effective Rate of US$1.195 was also created with buying and selling rates of
US$1.2017 and US$1.1887 per New Zealand unit.
23 June 1972 With the completed failure of Sterling on 23 June 1972, the Sterling Area was liquidated.
15 February 1973 Following the U.S. Dollar devaluation in February 1973, the Official Rate of the
New Zealand Dollar was realigned to US$1.351, with unchanged gold content.
9 July 1973 Wellington's currency was placed on a controlled, floating basis with the Effective Rate
determined by a basket of currencies of New Zealand's principle trading partners.
10 September 1973The controlled, floating Effective Rate was revised upward by 10%.
25 September 1974 Wellington, following Australia's lead, slashed the Effective Rate for the New
Zealand currency by 9%.
8 August 1975 The buying and selling rates for the U.S. Dollar were US$1.2479 and US$1.2579,
respectively, per $NZ1.
10 August 1975 The Reserve Bank of New Zealand adjusts the exchange rate for the U.S.
Dollar daily so as to maintain the effective relationship between the New Zealand Dollar and the
currencies of the main trading partners. Except for the Australian Dollar and the Pound Sterling, the
rate for spot transactions in currencies quoted by the New Zealand commercial banks are based on the
closing buying and selling rates of the previous day in London.
11 August 1975 The Effective Rate was depreciated by 15%.
29 July 1976 The New Zealand Dollar was partially devalued, as a tax was placed on travel
abroad, thus creating a Resident Travel Rate.
30 November 1976 The New Zealand Dollar was depreciated from US$0.9738=$NZ1 to
US$0.9063=$NZ1.
The Effective Rate was depreciated by 7%.
21 June 1979 The Effective Rate was downgraded 5% and a crawling-peg system of monthly
depreciations adopted.
The Resident Travel Rate was abolished and a flat travel tax imposed.
It was announced that the Reserve Bank would make a small regular adjustments in the rate,
each of less than 0.5%, reflecting relative cost and price developments in New Zealand and in its main
trading partners.
Remember at this time 1980-1981There was a world-wide recession.
and a little more important 1981 US over-the-counter derivatives were born with the 1st currency
“swap.”
June 1982 The crawling-peg system of depreciation was abandoned, the Effective Rate to be
periodically adjusted.
22 June 1982 It was announced that the Effective (trade-weighted) Exchange Rate index of the New
Zealand Dollar would be pegged to an index level of 83.4.
31 December 1982The buying and selling rates for the U.S. Dollar were $NZ1.3559 and $NZ1.3746,
respectively, per US$1.