The Tonga Pa’anga (TOP) is the official currency of the Kingdom of Tonga, an island nation located in the South Pacific Ocean.
The currency code for the Tonga Pa’anga is TOP, and the symbol commonly used is “T$.”
The National Reserve Bank of Tonga is responsible for issuing and managing the nation’s money supply, as well as setting and implementing monetary policy.
History of the Tonga Pa’anga
The Tonga Pa’anga was introduced in 1967, replacing the pound at a rate of 2 Pa’anga to 1 pound.
The decision to establish a new currency was part of Tonga’s efforts to assert its economic and political independence.
The Pa’anga was pegged to the Australian dollar at par upon its introduction, but the peg was later changed to a basket of currencies in 1991.
Denominations and Subdivisions
The Tonga Pa’anga is divided into 100 smaller units called seniti.
Coins are issued in denominations of 1, 2, 5, 10, 20, and 50 seniti, as well as 1 and 2 Pa’anga.
Banknotes are available in denominations of 2, 5, 10, 20, 50, and 100 Pa’anga.
The designs on Tonga Pa’anga coins and banknotes often depict the reigning monarch, historical figures, and cultural symbols, reflecting the nation’s history and heritage.
Exchange Rates and Economy
Tonga’s economy is small and largely dependent on agriculture, fishing, and remittances from Tongans living abroad.
The country also relies on foreign aid and tourism to support its economy.
Due to the small size of the economy and its dependence on external factors, the exchange rate of the Tonga Pa’anga can be subject to fluctuations.
Summary
The Tonga Pa’anga is the official currency of the Kingdom of Tonga, managed by the National Reserve Bank of Tonga.
Introduced in 1967, the Pa’anga is subdivided into 100 seniti, with coins and banknotes issued in various denominations.
The designs on the currency reflect the nation’s history and heritage.
The exchange rate of the Tonga Pa’anga can be influenced by external factors and the overall performance of the national economy.