What is the currency of Vanuatu?
Vanuatu is a country located in the South Pacific Ocean. It consists of about 80 islands covering an area of 1,300 kilometers. The capital and economic center of Vanuatu is Port Vila which is located on the Isle of Efate. The currency used in Vanuatu is vatu . It is abbreviated as VUV and the sign used to refer to it is VT. The Reserve Bank of Vanuatu is responsible for issuing and regulating the vatu in the Vanuatu economy.
History of Vanuatu Vatu
Before 1981, the currency used in Vanuatu was New Franc Hebrides. A year after the nation gained independence, this currency was replaced by equal vatu. The vatu was released without any sub-unit with 1 vatu which is its smallest unit. The circulation of the Australian dollar ceased immediately after the introduction of the vatu. Currently, the value of vatu shows an inflation rate of 3.9%.
50 vatu was the first coin to be issued after Vanuatu gained its independence in 1981. It was followed by 1, 2 and 5 vatus which were struck in aluminum bronze. Similarly to vatu 50, the 10 and 20 vatu coins were also hit in cupro-nickel. The vatu coins had features of the Vanuatu crest, valuable traditional objects and pig tusks. Due to the colonial history of Vanuatu, coin sizes resemble those of their French and English colonial rulers. For example, the 100 coin which replaces the note 100 in 1988 resembles the British coin 1 in thickness and dimensions. The Reserve Bank of Vanuatu stopped issuing vatu 1 and 2 coins in 2011. As a result, prices are now rounded to the nearest vatu of 5. In 2015, Vanuatu went through a monetary reform that saw the minting of a new series of coins from the real Australian mint. As a result, the coins currently used are referred to as 1, 2, 5, 10, 20, 50 and 100 vatus.
The Central Bank of Vanuatu published the first notes in March of 1982. The denominations introduced were Xnumx, 100 and 500 vatu. 1,000 were introduced to the 1989 vatu. Shortly thereafter in 5,000 new notes were issued in 1993 and 500. Then the Reserve Bank of Vanuatu published another series of new notes which were printed on a polymer in 1,000. The change was accompanied by the introduction of the note vatu of 1994. Currently, the residents of Vanuatu treat notes of notes 2,000, 200, 500, 1,000, 2,000 and 5,000.
The 10,000 vatu polymer note was first published in July 30, 2010 to celebrate Vanuatu’s 30 years of independence.
The most popular exchange rate is between the Australian dollar (AUD) and Vanuatu Vatu (VUV). As of June 28, 2017 the exchange rate was 1 AUD for 86.89 VUV. On the other hand, the exchange rate between vatu and US dollar on the same day was 1 USD equivalent to 109.03 VUV. During traditional ceremonies such as paying bride prices, instead of using vatu, residents use valuables like pigs, long dyed mats and tusks.