The Vanuatu Vatu is as the currency of Vanuatu that is an island nation in the South Pacific Ocean. This currency was introduced in 1981 and it has so much to say with regards to the country’s history. 

It marked the end of the New Hebrides franc, which had been used during the colonial era.

Vatu was adopted at a one-to-one exchange rate with the franc and that shows how the nation’s economic independence.

An interesting thing about of the vatu is that it doesn’t have any subdivisions; in other words, there are no smaller denominations like cents. This makes the vatu a direct and easy-to-understand currency.

Coins and Banknotes in Circulation

The vatu’s currency system consists of coins and banknotes, catering to various everyday transaction needs.

Coins

Coins are available in denominations of 5, 10, 20, 50, and 100 vatu.

Historically, there were also 1 and 2 vatu coins, but these were phased out of production in 2011 due to inflation, which made them less practical for daily use.

However, they remain legal tender, meaning they can still be used for transactions if found.

Banknotes

The banknotes, which are more commonly used for larger transactions, come in denominations of 200, 500, 1,000, 2,000, 5,000, and 10,000 vatu. In 2014, the Reserve Bank of Vanuatu introduced a new series of polymer banknotes.

These notes were designed to be more durable and secure, offering enhanced resistance to wear and tear, particularly in Vanuatu’s humid tropical climate.

The polymer material also integrates advanced security features to prevent counterfeiting, ensuring the reliability of the currency.

This blend of traditional coins and modern, robust banknotes ensures the Vanuatu vatu meets the practical needs of its users while reflecting the nation’s unique cultural and economic identity.

Exchange Rates

As of November 20, 2024, the exchange rate between the US dollar (USD) and the Vanuatu vatu (VUV) stands at approximately 1 USD to 120.60 VUV.

This means 1 vatu is valued at about 0.0083 USD. However, it’s important to note that exchange rates are always changing and can fluctuate due to various economic factors such as global market conditions and local monetary policies.

Before conducting any transactions or planning expenses, it’s wise to check the most current exchange rates for accurate conversions.

Economy of Vatu

The Vanuatu vatu is not only a means of transaction but also a reflection of the country’s economic landscape. Vanuatu’s economy is supported by three major sectors:

• Agriculture: Subsistence and export farming form the backbone of rural livelihoods.
• Tourism: The island nation’s pristine beaches, crystal-clear waters, and vibrant cultural heritage attract visitors from around the globe.
• Offshore Financial Services: Vanuatu is recognized as a tax-friendly jurisdiction, drawing international businesses and investments.

The performance of these sectors directly impacts the vatu’s value. Additionally, external factors, such as global commodity prices or shifts in the tourism market, can influence its strength. The Reserve Bank of Vanuatu plays a crucial role in managing the currency’s issuance and implementing monetary policies to maintain economic stability.

You Want to Travel to Vatu?

For anyone planning a trip to Vanuatu, having the local currency, the vatu, on hand is highly recommended.

While tourist hotspots and larger establishments might accept major foreign currencies or credit cards, smaller vendors, markets, and businesses in rural areas typically deal exclusively in vatu.

By carrying local currency, travelers can ensure smoother transactions, especially in off-the-beaten-path destinations.