Tag Archives: NZ Dollar

For thirty years New Zealand has run a current account deficit, averaging around 5% of GDP.   To cover this cash outflow, New Zealanders have sold assets to, or borrowed from, foreigners.  As a result New Zealand’s net foreign liabilities are around 75% of GDP, a very high ratio by international standards. Despite recent years having enjoyed higher prices for our exports and …

After today’s CPI figure we expect the Reserve Bank to cut the Official Cash Rate on October 25th in an effort to lower the exchange rate, the Employers and Manufacturers Association says. “The CPI figure indicates inflation has moved below the agreed target of 1-3 per cent required of the Reserve Bank leaving ample room for a cut to the OCR,” …

Green Party co-leader Dr Russell Norman wants the Reserve Bank of New Zealand to launch quantitative easing to lower the value of the New Zealand Dollar. Dr Norman writes “Since the Global Financial Crisis, our major trading partners have engaged in large scale measures that have devalued their currencies” and that “The UK, USA, Japan and the European Union have …

The New Zealand dollar gained after exports to China, the country’s second-biggest trading partner, rose at the fastest pace in three months in September, easing concerns that the global economy is heading for another worldwide slowdown. The New Zealand dollar rose as high as 81.88 US cents and traded at 81.75 cents just after 8am, up from 81.60 cents at …

Economic Development Minister Steven Joyce says that while the closure of one paper machine at the Kawerau mill was a consequence of the fact that newsprint making was a “declining industry”. Speaking this weekend on TV3’s “The Nation” he rejected claims from the mill owners, Norske Skog, that the high New Zealand dollar was a factor in the closure. Asked …