Vanuatu vatu

Last updated

Vanuatu vatu
ISO 4217
CodeVUV (numeric:548)
Unit
Pluralvatu
Symbol VT‎
Denominations
Banknotes
 Freq. usedVT 200, VT 500, VT 1,000, VT 2,000, VT 5,000, VT 10,000 [1]
Coins
 Freq. usedVT 5, VT 10, VT 20, VT 50, VT 100 [1]
 Rarely usedVT 1, VT 2 (discontinued; still legal tender)
Demographics
Replaced New Hebrides franc (at par)
User(s)Flag of Vanuatu.svg  Vanuatu
Issuance
Central bank Reserve Bank of Vanuatu
 Website www.rbv.gov.vu
Valuation
Inflation 3.9%
 Source The World Factbook , 2007 est.

The vatu (abbreviation: VT; [1] ISO code: VUV) is the currency of Vanuatu. Vanuatu is, by population, the fourth smallest country in the world, after Barbados,Tonga, and the Seychelles to have its own currency and monetary policy.

Contents

The vatu has no subdivisions, which is one of two currencies where this is the case, alongside the Zimbabwe Gold (ZiG) currency.

Etymology

The term vatu, used in all three official languages of Vanuatu (English, French, and Bislama), was borrowed from the word for "stone" in some indigenous languages (such as Raga vatu). Ultimately, it descends from Proto-Oceanic *patu, from Proto-Malayo-Polynesian and Proto-Austronesian *batu of the same meaning.

Exchange rate

Current VUV exchange rates
From Google Finance: AUD CAD CHF CNY EUR GBP HKD JPY USD THB EUR JPY
From Yahoo! Finance: AUD CAD CHF CNY EUR GBP HKD JPY USD THB EUR JPY
From XE.com: AUD CAD CHF CNY EUR GBP HKD JPY USD THB EUR JPY
From OANDA: AUD CAD CHF CNY EUR GBP HKD JPY USD THB EUR JPY

History

The vatu was introduced in 1981, one year after independence, to replace the New Hebrides franc at par. [2] The vatu was issued as a single unit with no subdivision, with the 1 vatu coin being the smallest denomination issued, in a similar vein to the (post-1953) Japanese yen and the Tajikistani ruble (although that had an official if theoretical, subdivision).

The ISO 4217 currency code for the Vanuatu vatu is VUV. Its nationally recognized symbol Vt is the most often used in written format. [3] The vatu's introduction also saw the end of the official circulation of the Australian dollar in Vanuatu. [3]

Coins

Vanuatu's first post-colonial coin was a 50 vatu coin introduced in 1981 and commemorated 1 year of independence. It was struck in pure nickel like previous issues and was released into circulation, though originally its release was targeted more towards collectors. Shortly thereafter, in 1983, 1, 2, and 5 vatu coins were released in aluminium bronze and 10, 20, and 50-vatu coins were introduced in cupro-nickel, replacing the coinage of the New Hebrides Franc as the new circulation currency. This also replaced the Australian currency that was circulating in the British controlled islands. All Vanuatuan coins depict the Vanuatuan coat of arms, consisting of a native warrior in front of a whorled pig's tusk, a traditional item of value. The reverses depict other traditional items of value.

Due to Vanuatu's French colonial history, the current vatu coins have the same size and coloration of the coins of New Hebrides which are based in part on French units, particularly the 1, 2, and 5 vatu in their similarity in size and composition to the 5, 10, and 20 centimes of the old French Franc. The 10, 20, and 50 vatu bear some similarities to Australian coins but are actually slightly larger with closer approximate size to coins of similar valuation to those in New Caledonia, and French Polynesia. In 1988, a nickel-brass 100 vatu coin was introduced, this coin replaced the 100 vatu note. The coin is of the same size and general thickness of the British 1 pound coin.

In 2011, the Reserve Bank of Vanuatu ceased to issue 1 and 2 vatu coins, which had become infrequently used due to inflation. [4] The coins are still legal tender. Cash transactions in Vanuatu stores are now rounded to the nearest 5 vatu.

As part of a coinage reform, new coins were minted in 2015 by the Royal Australian Mint. The older coins remained in circulation and legal tender. [5]

These coins are denominated 5, 10, 20, 50, and 100 vatu.

Old coinage series (still legal tender)
DenominationCompositionDiameterDesign on reverse
VT 1Nickel-brass16 mmShell
VT 219 mm
VT 523 mm
VT 10Cupro-nickel24 mmCoconut crab
VT 2028 mm
VT 5033 mmYams
VT 100Nickel-brass23 mmCoconuts


Newer coinage series
DenominationCompositionDiameterDesign on reverse
VT 5 Copper-plated steel 19 mmTraditional outrigger canoe
VT 10 Nickel-plated steel 21 mmCoconut crab
VT 20 Nickel-plated steel 24.2 mmTraditional chiefs
VT 50 Nickel-plated steel 27 mmKava and coconut
VT 100 Aluminum-zinc-bronze 23.25 mmParliament building

Banknotes

On 22 March 1982, notes were introduced by the Central bank of Vanuatu in denominations of 100, 500, and 1,000 vatu. [6] These officially replaced franc notes of the former New Hebrides. In 1988 the 100 vatu note was withdrawn from circulation and replaced by a 100 vatu coin. In 1989, 5,000 vatu notes were introduced.

In 1993, after a financial restructure, the Reserve Bank of Vanuatu took over paper money issuance and introduced newly designed notes for 500 and 1,000 vatu. 200-vatu notes were first introduced in 1995 to cut down on the amount of 100 vatu coins received in change and the need to meet demand by producing more. In 2011, new 5,000 vatu notes were also issued in polymer. [7] Polymer 10,000 notes were issued as a commemorative issue on 28 July 2010. As of 2013, they are no longer in circulation. [1] On 9 June 2014, the Reserve Bank of Vanuatu introduced a new series of notes printed on polymer, among the new series of notes is a new denomination of 2,000 vatu, in addition to regular 10,000 vatu notes. [8]

Dollar

Local residents sometimes refer to a notional dollar, equal to 100 vatu, without specifying which country's currency they have in mind. This stems from the period 1966–1973, when the New Hebrides franc was pegged to the Australian dollar at a rate of 100 francs = 1 dollar. Although no relationship currently exists, it simplifies thinking in the larger numbers which a low-value unit causes. For example, the Government's budget of VT 6,000,000,000 is in fact only about US$50,000,000.

The concept of this notional dollar was supported by the size of the former 100 vatu coin: at 23 mm, it was comparable to the Australian $1 (25 mm) and the New Zealand $1 (23 mm) but the thickness is equivalent to the twelve-sided British £1 coin. It has now been replaced by a scalloped version.

Pounds and shillings

In some Vanuatuan languages, in which counting in large numbers is cumbersome and not well known, 10 vatu is colloquially referred to as "one shilling", and 200 vatu is referred to as "one pound". For example, in the Apma language, "50 vatu" would be selen kalim "five shillings". [9] This roughly reflects the historical exchange rate of the vatu against the pound, although since 2008 the number of vatu to the pound has been significantly lower.

Alternative currencies in Vanuatu

Many communities in Vanuatu continue to conduct ceremonial business such as the paying of fines and bride-prices using traditional items of value, such as pigs, curved boars' tusks and long dyed mats. Vatu is sometimes used as a substitute for traditional valuables in such ceremonies, although the National Council of Chiefs discourages this.

The Tangbunia bank, based on Pentecost Island in Vanuatu, offers accounts and transfers denominated in livatu, a unit of currency equivalent to the value of a fully curved boar's tusk.

See also

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References

  1. 1 2 3 4 The Reserve Bank of Vanuatu. "Current Banknotes and Coins in Circulation." Accessed 2 March 2013. Archived 2 August 2018 at the Wayback Machine
  2. ↑ Turner, Jay (29 June 2020). "An Emergency Coin for a Country That No Longer Exists". PCGS Europe. Retrieved 14 May 2023.
  3. 1 2 "VUV | Vanuatu Vatu | OANDA". www1.oanda.com. Retrieved 14 May 2023.
  4. ↑ "Archived copy" (PDF). Archived from the original (PDF) on 10 September 2016. Retrieved 25 November 2014.{{cite web}}: CS1 maint: archived copy as title (link)
  5. ↑ "Australia mints world history with new circulating coin for Cook Islands, Tonga & Vanuatu [04/03/2015]". Archived from the original on 11 March 2015. Retrieved 13 March 2015.
  6. ↑ Linzmayer, Owen (2012). "Vanuatu". The Banknote Book. San Francisco, CA: BanknoteNews.com.
  7. ↑ , BanknoteNews.com. Retrieved 2010-09-10.
  8. ↑ Vanuatu new 200-, 1,000-, and 2,000-vatu polymer notes confirmed BanknoteNews.com. 16 July 2014. Retrieved 2014-08-14.
  9. ↑ Gray 2013, The Languages of Pentecost Island
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