3 Pence – ERR New ZealandandHong Kong

In 1965, both New Zealand and Hong Kong operated within the framework of the sterling area, but their currency situations were distinct. New Zealand had its own national currency, the New Zealand pound (NZ£), which was pegged to the British pound sterling at par. This link provided stability but also tied New Zealand's monetary policy and reserves closely to the United Kingdom. The system was managed by the Reserve Bank of New Zealand, and the country was preparing for a significant change: the decimalisation of its currency, which was being planned for 1967 and would introduce the New Zealand dollar.

Hong Kong's currency situation was more complex and historically rooted in its colonial status. Since 1935, it had operated a currency board system, issuing the Hong Kong dollar (HK$) which was fully backed by sterling reserves and pegged at a fixed rate of HK$16 = £1. This orthodox currency board ensured extreme stability and automatic adjustment mechanisms. In 1965, this system faced a severe test with a series of bank runs, most notably against the Hang Seng Bank, which threatened the banking sector's stability. The crisis was ultimately contained with support from the Hong Kong government and the banking sector, reaffirming the currency board's resilience.

The key difference lay in sovereignty and structure: New Zealand, as an independent nation, was moving toward modernising its own sterling-pegged currency. Hong Kong, a British colony, relied on a rigid, automatic currency board pegged to sterling, a system that successfully withstood a domestic banking panic. Both economies were profoundly influenced by sterling, but while New Zealand was planning a controlled evolution of its monetary system, Hong Kong was reinforcing the strict, colonial-era rules that defined its financial identity.