View source for Vanuatu vatu

{{short description|Currency of Vanuatu}}
{{Use dmy dates|date=January 2021}}
{{Infobox currency
| image_1 = 
| image_title_1 = 10 Vatu coin
| iso_code = VUV
| date_of_introduction = 1981
| using_countries = {{flag|Vanuatu}}
| plural = vatu
| inflation_rate = 3.9%
| inflation_source_date = ''[https://web.archive.org/web/20070613003823/https://www.cia.gov/library/publications/the-world-factbook/fields/2092.html The World Factbook]'', 2007 est.
| name_abbr = VT
| frequently_used_coins = VT&nbsp;5, VT&nbsp;10, VT&nbsp;20, VT&nbsp;50, VT&nbsp;100<ref name="RBV"/>
| rarely_used_coins = VT&nbsp;1, VT&nbsp;2 (discontinued; still legal tender)
| frequently_used_banknotes = VT&nbsp;200, VT&nbsp;500, VT&nbsp;1,000, VT&nbsp;2,000, VT&nbsp;5,000, VT&nbsp;10,000<ref name="RBV"/>
| issuing_authority = [[Reserve Bank of Vanuatu]]
| issuing_authority_website = {{URL|www.rbv.gov.vu}}
| replaced_currency = [[New Hebrides franc]] (at par)
}}

The '''vatu''' ([[currency sign|abbreviation]]: '''VT''';<ref name="RBV">The Reserve Bank of Vanuatu. "[http://www.rbv.gov.vu/index.php?option=com_content&view=article&id=220&Itemid=74&lang=en Current Banknotes and Coins in Circulation]." Accessed 2 March 2013. {{Webarchive|url=https://web.archive.org/web/20180802131952/http://www.rbv.gov.vu/index.php?option=com_content&view=article&id=220&Itemid=74&lang=en |date=2 August 2018 }}</ref> [[ISO 4217|ISO code]]: '''VUV''') is the currency of [[Vanuatu]]. It has no subdivisions.

== 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 language|Raga]] ''vatu''). Ultimately, it descends from [[Proto-Oceanic language|Proto-Oceanic]] ''*patu'', from [[Proto-Malayo-Polynesian language|Proto-Malayo-Polynesian]] and [[Proto-Austronesian language|Proto-Austronesian]] ''*batu'' of the same meaning.

== Exchange rate ==

{{Exchange rate|VUV|THB|EUR|JPY|USD}}

==History==

The vatu was introduced in 1981, one year after independence, to replace the [[New Hebrides franc]] at par.<ref>{{Cite web |last=Turner |first=Jay |date=29 June 2020 |title=An Emergency Coin for a Country That No Longer Exists |url=https://www.pcgseurope.com/article/an-emergency-coin-for-a-country-that-no-longer-exists |access-date=14 May 2023 |website=PCGS Europe}}</ref> 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 rouble|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.<ref name=":0">{{Cite web |title=VUV {{!}} Vanuatu Vatu {{!}} OANDA |url=https://www1.oanda.com/currency/iso-currency-codes/VUV |access-date=2023-05-14 |website=www1.oanda.com}}</ref> The vatu's introduction also saw the end of the official circulation of the [[Australian dollar]] in Vanuatu.<ref name=":0" />

==Coins==

{{More citations needed section|date=February 2024}}

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 [[Withdrawal of low-denomination coins|ceased to issue]] 1 and 2 vatu coins, which had become infrequently used due to inflation.<ref>{{Cite web |url=http://www.rbv.gov.vu/attachments/article/253/RBV%20statement%20on%20status%20of%20Vt1%20and%20Vt2%20and%20Rounding%20-%20English.pdf |title=Archived copy |access-date=25 November 2014 |archive-url=https://web.archive.org/web/20160910021543/http://www.rbv.gov.vu/attachments/article/253/RBV%20statement%20on%20status%20of%20Vt1%20and%20Vt2%20and%20Rounding%20-%20English.pdf |archive-date=10 September 2016 |url-status=dead }}</ref> The coins are still legal tender. Cash transactions in Vanuatu stores are now [[Cash rounding|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.<ref>{{Cite web |url=http://www.ramint.gov.au/media/press-releases/2015/20150304.cfm |title=Australia mints world history with new circulating coin for Cook Islands, Tonga & Vanuatu &#91;04/03/2015&#93; |access-date=13 March 2015 |archive-url=https://web.archive.org/web/20150311125244/http://www.ramint.gov.au/media/press-releases/2015/20150304.cfm |archive-date=11 March 2015 |url-status=dead}}</ref>

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

{|class="wikitable"
|+ Old coinage series (still legal tender)
!Denomination!!Composition!!Diameter!!Design on reverse
|-{{Coin-silver-color}}
|VT&nbsp;1||rowspan="3"|Nickel-brass||16&nbsp;mm||rowspan="3"|Shell
|-{{Coin-silver-color}}
|VT&nbsp;2||19&nbsp;mm
|-{{Coin-silver-color}}
|VT&nbsp;5||23&nbsp;mm
|-{{Coin-silver-color}}
|VT&nbsp;10||rowspan="3"|Cupro-nickel||24&nbsp;mm||rowspan="2"|Coconut crab
|-{{Coin-silver-color}}
|VT&nbsp;20||28&nbsp;mm
|-{{Coin-silver-color}}
|VT&nbsp;50||33&nbsp;mm||Yams
|-{{Coin-silver-color}}
|VT&nbsp;100||Nickel-brass||23&nbsp;mm||Coconuts
|}

{|class="wikitable"
|+ Newer coinage series
!Denomination!!Composition!!Diameter!!Design on reverse
|-{{Coin-copper-color}}
|VT&nbsp;5||[[Copper]]-plated [[steel]]||19&nbsp;mm||Traditional outrigger canoe
|-{{Coin-silver-color}}
|VT&nbsp;10||[[Nickel]]-plated [[steel]]||21&nbsp;mm||Coconut crab
|-{{Coin-silver-color}}
|VT&nbsp;20||[[Nickel]]-plated [[steel]]||24.2&nbsp;mm||Traditional [[Tribal chief|chiefs]]
|-{{Coin-silver-color}}
|VT&nbsp;50||[[Nickel]]-plated [[steel]]||27&nbsp;mm||Kava and coconut
|-{{Coin-yellow-color}}
|VT&nbsp;100||[[Aluminum]]-[[zinc]]-[[bronze]]||23.25&nbsp;mm||Parliament building
|}

==Banknotes==

On 22 March 1982, notes were introduced by the Central bank of Vanuatu in denominations of 100, 500, and 1,000 vatu.<ref>{{cite book | last1 = Linzmayer | first1 = Owen | title = The Banknote Book | chapter = Vanuatu | publisher = BanknoteNews.com | year = 2012 | location = San Francisco, CA | url = http://www.banknotebook.com}}</ref> 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.<ref>[http://banknotenews.com/files/tag-vanuatu.php], BanknoteNews.com. Retrieved 2010-09-10.</ref> Polymer 10,000 notes were issued as a commemorative issue on 28 July 2010. As of 2013, they are no longer in circulation.<ref name="RBV"/> 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.<ref>[http://banknotenews.com/files/3010b574f705c986bf11a3feec8c0aa2-3032.php Vanuatu new 200-, 1,000-, and 2,000-vatu polymer notes confirmed] BanknoteNews.com. 16 July 2014. Retrieved 2014-08-14.</ref>

==Dollar==

{{Unreferenced section|date=June 2018}}

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&ndash;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&nbsp;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&nbsp;mm, it was comparable to the [[Australian one-dollar coin|Australian $1]] (25&nbsp;mm) and the [[New Zealand one dollar coin|New Zealand $1]] (23&nbsp;mm) but the thickness is equivalent to the [[one pound (British coin)|twelve-sided British £1 coin]]. It has now been replaced by a [[Scalloped edge|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".<ref>Gray 2013, ''The Languages of Pentecost Island''</ref> 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 [[Malvatumauri|National Council of Chiefs]] discourages this.

The [[Tangbunia Bank|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==

* [[Economy of Vanuatu]]

==References==

{{Reflist}}
*{{numis cite SCWC|date=1991}}
*{{numis cite SCWPM|date=1994}}

==External links==
* [https://en.numista.com/catalogue/vanuatu-1.html Coins from Vanuatu] (Numista)

{{Vanuatu topics}}
{{Currencies of Oceania}}
{{Portal bar|Money|Numismatics|Oceania}}

[[Category:Currencies of Oceania]]
[[Category:Currencies introduced in 1982]]
[[Category:Economy of Vanuatu]]
[[Category:Circulating currencies]]