All you need to know about New Zealand's money

This money page provides a summary of New Zealand's money supply. The links below then take you to a range of other information about New Zealand's money, including links that describe how the money supply increases by credit creation - a  day to day part of modern banking.

Money can be broken down into different catergories - in the recent past we talked about: currency (notes and coins), M1, M2, and M3 money. New Zealand Reserve Bank has now moved to talking about: broad money, narrow money, and currency.

Components of broad money

Broad money is the sum of all liquid financial instruments held by money-holding sectors that are widely accepted in an economy as a medium of exchange, plus those that can be converted into a medium of exchange at short notice at, or close to, their full nominal value.

Narrow money (M1) is the narrowest money aggregate and comprises: currency held by the public and transaction deposits

Currency held by the public is currency issued by the Reserve Bank of New Zealand less any currency held by registered banks. Also known as notes and coins in the hands of the public.

Transaction deposits are deposit balances where the purpose of the account is primarily for making transactions or "every day" banking by customers. Balances are on call.

Other components of broad money comprises: savings deposits, term deposits, and other (see below).

Other components of broad money include: short-term debt securities, money-market funds.

Data is sourced from: Reserve Bank of New Zealand click here to see

However you look at it, there's never enough money!

Other money pages

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For more information on New Zealand's money supply, follow these links below to see graphs, data, and money counters.

The gap between income and prices

Graphs and data

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Gross domestic product

Graphs and data

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Money and debt comment

Graphs and data

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