Because the NZ$ is a fully free and floating currency, it allows for the issuing of debt instruments demoninated in NZ$ but issued outside the country. They have been offered often by 'supranational organisations' like the World Bank, and European regulatory organisations, as well as large multinationals (GE) and international banks.

These are known as 'NZ$ eurobonds', and are issued in three general categories; Eurokiwi, uridashi, and 'globals'.

These types of bonds are targeted at retail investors, usually issued with small parcel sizes. They are not attractive to corporates because they are unhedged.

Retail investors are attracted (or have been attracted in the past) because NZ$ bonds have NZ-level interest rates, which have been very much higher than in many other countries. A favourite market is in Japan, where local retail savers are offered essentially zero for their yen savings by banks. So the New Zealand interest rates look very attractive to them. But a Japanese saver is taking the currency risk when they buy NZ$ bonds (=uridashi).

Therefore, the attractiveness of a NZ$ Eurobond offer depends on two things - the interest rate offered compared to lthe local interest rate, and the expectation of where the exchange rate will be when the bond matures.

Recently, with Australian interest rates being higher than NZ offers, much of this market is moving away from NZ$ offers to AU$ offers.

Because so much value/volume is involved in these bonds, they can have a significant influence on the NZ$ exchange rate when there are major issues, or major redemptions.