Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

New Zealand Dollar - “On Road To Nowhere?”

The overnight slump in the New Zealand dollar to 44.3c against the US$ points to an economy whose international reputation is rapidly diminishing to dangerous levels.

The Kiwi dollar began the week just above 45 US cents but by this morning had tracked down to a level not seen since 1985 when the “open market” policies of Rogernomics were introduced.

Commenting, Michael Barnett, Chief Executive of the Auckland Regional Chamber of Commerce, said that it is hard to escape the conclusion that international investors have lost confidence in New Zealand. “Are we starting to pay the price for unwinding some of the key stabilisation policies introduced in the 1980s?”

The NZ Dollar looks to be on a road to nowhere, and points to an economy that international investors and commentators believe is performing poorly and getting worse, he warned.

There is a risk of complacency - a feeling that “we can sit back and live with a low dollar because it brings higher prices for our commodity exports.”

“But we can’t rely on higher returns from a limited range of commodities continuing indefinitely.” If New Zealand is to build a diverse economy and lift living standards to levels similar to those of other successful countries, a strategy will be required to attract new investment into New Zealand.

The overnight slump is yet another warning of how vulnerable we are to international trends and the pressures continuing to build on our skilled workforce and businesses to take themselves to a better performing and more sympathetic business environment offshore.


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Mycoplasma Bovis: More Properties Positive

One of the latest infected properties is in the Hastings district, the other three are within a farming enterprise in Winton. The suspect property is near Ashburton. More>>

ALSO:

Manawatū Gorge Alternative: More Work Needed To Choose Route

“We are currently working closely and in partnership with local councils and other stakeholders to make the right long-term decision. It’s vital we have strong support on the new route as it will represent a very significant long-term investment and it will need to serve the region and the country for decades to come.” More>>

ALSO:

RBNZ: Super Fund Chief To Be New Reserve Bank Governor

Adrian Orr has been appointed as Reserve Bank Governor effective from 27 March 2018, Finance Minister Grant Robertson says. More>>

ALSO:

ScoopPro: Helping PR Professionals Get More Out Of Scoop

Scoop.co.nz has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>

Insurance: 2017 Worst Year On Record For Weather-Related Losses

The Insurance Council of New Zealand (ICNZ) announced today that 2017 has been the most expensive year on record for weather-related losses, with a total insured-losses value of more than $242 million. More>>

ALSO: