TOP - Tongan Paʻanga

Tongan Paʻanga overview

Tongan Paʻanga has the symbol of T$, managed by the Reserve Bank of Tonga (Pangikē Pule Fakafonua ʻo Tonga), which ensures its stability and regulates its circulation within the country. The Paʻanga is subdivided into 100 seniti (cents) and is available in both coins and banknotes.

Tonga’s currency is often pegged to major international currencies like the New Zealand Dollar (NZD), as Tonga has a close economic relationship with New Zealand, which influences the exchange rate. The Paʻanga plays a significant role in maintaining the local economy, alongside remittances from Tongans living abroad, which also form a substantial part of the country's economic activity.

The Origin and History of the Tongan Paʻanga

The name "paʻanga" traces back to 1806. When the Tongans attacked the Port-au-Prince ship and discovered a treasure of coins, Chief Fīnau ʻUlukālala thought the coins were simply "paʻanga," referring to the seeds of the Entada phaseoloides plant, which are large, round, and glossy. These seeds were traditionally used in Tongan dances or as pieces in a game called lafo (disk-throwing).

After understanding the value of these coins, Fīnau realized their worth, but his remark left a lasting impression: "If the money were made of iron and could turn into a knife, axe, or chisel, then it would be valuable. But in this form, I don't see any meaning in it."

When Tonga adopted the decimal currency system in 1967, the important question arose: What should the new currency be called? While "dollar" was a popular choice, the word "tola" in Tongan had inappropriate associations, such as being related to coconut husk. Therefore, in order to preserve their cultural identity, the people of Tonga chose the name "paʻanga" for their new currency, symbolizing national pride and a connection to their past.

Tongan Paʻanga TOP denominations

The Tongan Paʻanga currency system not only includes banknotes but also a diverse set of coins with unique denominations and designs. The Tongan Paʻanga coins stand out from other coins around the world.

Tongan Paʻanga Coins

The 1 Paʻanga coin is one of the most unique, with a rectangular shape, making it one of the rarest designs in global currency systems.

The 2 Paʻanga coin is large enough to be considered the biggest coin ever issued, but due to its impractical size, it was unpopular and ceased production in the 1980s.

The Paʻanga coin denominations include 1, 2, 5, 10, 20, 50, and 100 millimes, as well as larger coins like the 1, 2, and 5 Paʻanga.

These coins are not only used for daily transactions but also carry deep cultural symbols of Tonga, such as the image of the Tu'i Malila turtle, a gift from Captain James Cook to the Tongan royal family, and depictions of wheat bundles and the Southern Cross constellation, reflecting the connection between agriculture and the sea in Tongan life.

Tongan Paʻanga Banknotes

The Tongan Paʻanga banknotes are not only a medium of exchange but also finely crafted works of art. These notes typically feature portraits of the kings of Tonga, particularly King Tupou VI, and important cultural and historical landmarks of the country. They also highlight Tonga's agricultural values through images of wheat, representing the commitment to promoting domestic food production.

Exchange Rate of the Tongan Paʻanga (TOP)

The Tongan Paʻanga was officially introduced on April 3, 1967, replacing the British pound at an exchange rate of 1 pound = 2 paʻanga. Initially, the currency was pegged to the Australian dollar. However, since 1991, Tonga adopted a currency basket system, with the Paʻanga pegged to a mix of currencies including the Australian dollar, New Zealand dollar, US dollar, and Japanese yen. This change helped the Paʻanga maintain greater stability amidst fluctuations in the international currency market.

Despite this, the Paʻanga has gradually depreciated against the Australian dollar over time. Currently, the Paʻanga is not widely traded on international markets and is not as commonly used as other stronger currencies. However, for the people of Tonga, the Paʻanga remains a proud symbol of national uniqueness and cultural identity.

The exchange rate of the Tongan Paʻanga today is influenced by international market fluctuations and the strength of other currencies. The Paʻanga is not freely traded internationally and cannot be easily exchanged outside of Tonga. While it is not possible to exchange Paʻanga before arriving in Tonga, visitors can exchange money at banks and currency exchange services within the country. As of 2024, the exchange rates of the Paʻanga to several major currencies are:

• 1 USD = 2.40 Paʻanga

• 1 EUR = 2.55 Paʻanga

• 1 AUD = 1.70 Paʻanga

While the exchange rate of the Paʻanga is not stable compared to other international currencies, it still plays a significant role in the economy and daily life of the people of Tonga. The Paʻanga serves as a connection between the past and the present, and remains an integral part of reflecting Tonga's identity and development.