The Cook Islands, a self-governing territory in free association with New Zealand, consists of 15 islands in the South Pacific Ocean, with Rarotonga, the largest and most populous island, hosting the capital city, Avarua. Named after British explorer Captain James Cook, the islands were settled by Polynesians around the 6th century AD and later became a British protectorate before becoming a territory of New Zealand.
Tourism, driven by stunning beaches and rich marine life, is the backbone of the Cook Islands' economy, while agriculture, focusing on tropical fruits like bananas, coconuts, and citrus, also plays a significant role. Operating as a parliamentary democracy, the Cook Islands has its own government, led by a Prime Minister, and a unicameral legislature, the Parliament of the Cook Islands. Despite being largely self-governing, New Zealand oversees defense and foreign affairs.
The Cook Islands use the New Zealand dollar (NZD) as their official currency, a reflection of their free association with New Zealand, which allows them to govern themselves independently while maintaining certain ties, including currency and defense. In 1972, the Cook Islands introduced bronze 1 and 2-cent, and cupro-nickel 5, 10, 20, and 50-cent, and 1-dollar coins, matching New Zealand's in size, weight, and composition. However, the dollar coin, larger in British crown size, was more widely used, showcasing unique flora, fauna, and items from the Cook Islands. In 1983, the 1 and 2-cent coins were discontinued and later demonetized, preceding New Zealand's action by nearly a decade.
The Cook Islands has a history of unique monetary practices, including retaining large crown-sized coins longer than other countries. In 1987, smaller, lighter $1 coins were introduced, followed by a triangular $2 coin, a modern currency first, and a dodecagonal $5 piece in 1987. In 1988, the 50-cent coin was redesigned to bear the Cook Islands Māori denomination "tene." In 1995, the Cook Islands dollar was replaced by the New Zealand dollar, though local coins continued with Cook Islands inscriptions.
In 2000, a stainless steel 5-cent coin was issued, depicting the Polynesian sea god Tangaroa, while a 1-cent aluminum coin was reintroduced in 2003. By 2006, older cent coins were phased out in both the Cook Islands and New Zealand. Commemorative sets were minted for collectors, generating revenue for the Cook Islands government. In 2015, new coins, similar to older designs, were minted by the Royal Australian Mint, featuring some traditional designs.
On April 30, 2016, all previous coins lost legal tender status, featuring Queen Elizabeth II on the obverse, as she remains Head of State of the Realm of New Zealand.
