The New Zealand dollar (NZD) is the official currency of New Zealand. It is also known as the "kiwi" and is regularly abbreviated as NZ$. The NZD is widely traded on the global foreign exchange market due to New Zealand's relatively stable economy and political system. Its value fluctuates in relation to other currencies, and its exchange rate is influenced by a wide variety of factors, including global economic conditions, domestic economic performance, interest rates, and geopolitical events.