Meanwhile, the rate of currency issuance, and governmental budget deficits, had increased such that the national debt was nearly double annual GDP.

Eventually, commercial banks refused to convert the currency to New Zealand dollars resulting in capital flight and an economic crisis.

In 1987, a smaller, lighter scallop-edged $1 coin with a similar size and shape to the Hong Kong $2 piece was issued.

2003 saw the reintroduction of a 1-cent coin, this time composed of aluminium rather than bronze and slightly smaller and thicker than the 10-cent piece.

The cents are smaller than previous issues with closer size and weight to the current coins of New Zealand while the new dollars continue to have their distinctive shapes.

[8] The obverse of all coins of the Cook Islands depict Queen Elizabeth II; she was Head of State of the Realm of New Zealand.

Due to exchange schemes involving large stocks of non-circulating commemorative coins, mintages are regulated and not recognized or accepted as legal tender within the Cook Islands.

In June 1995, the government of the Cook Islands began exchanging all of the larger banknotes for New Zealand currency, but the 3-dollar note and all coins remain in use.

[11] On 4 August 2021, the Cook Islands Ministry of Finance and Economic Management issued a new 3-dollar banknote, being printed on polymer.