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


Reserve Bank intervention opens door to huge risk

Media statement - Wednesday, April 7th, 2004

Reserve Bank intervention opens door to huge risk

Parliament's thumbs up yesterday to the Reserve Bank's intervening in currency markets opens the door to further enormous risk, the Employers & Manufacturers Association (Northern) says.

"Empowering the Reserve Bank to buy and sell the New Zealand dollar the hope of influencing the value of the currency is a fraught and risky business," said EMA's chief executive, Alasdair Thompson.

"The risk is that a currency speculator will call the Reserve Bank's bluff at a critical time when the Bank has decided the currency is too low or high, and force it to play its hand.

"If the Bank ends up losing, at the tax payers' expense, Dr Cullen's multi billion dollar defence fund could vanish in a twinkle.

"The Bank will need to weigh with extreme care this extra dimension, and its madness to think the Bank could have any significant impact on the value of the Euro, Yen or US dollar.

"The last thing New Zealand can afford is for a future finance minister to pressure a Reserve Bank governor into buying or selling of the dollar as happened just 20 years ago."


© Scoop Media

Business Headlines | Sci-Tech Headlines


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>


Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news