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."

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

ScoopPro: Helping The Education Sector Get More Out Of Scoop

The ScoopPro professional license includes a suite of useful information tools for professional users of Scoop including some specifically for those in the education sector to make your Scoop experience better. More>>

Big Tax Bill Due: Destiny Church Charities Deregistered

The independent Charities Registration Board has decided to remove Destiny International Trust and Te Hahi o Nga Matamua Holdings Limited from the Charities Register on 20 December 2017 because of the charities’ persistent failure to meet their annual return obligations. More>>

57 Million Users' Data: Uber Breach "Utterly Preventatable"

Cybersecurity leader Centrify says the Uber data breach of 57 million customer and driver records - which the ride-hailing company hid for more than a year - was “utterly preventable”. More>>

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Having A Cow? Dairy Product Prices Slide For Fourth Straight Auction

Dairy product prices fell at the Global Dairy Trade auction, retreating for the fourth straight auction amid signs of increased production... Whole milk powder fell 2.7 percent to US$2,778 a tonne. More>>

ALSO:

Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>

ALSO:

Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>

ALSO:

 
 
 
 
 
 
 
 
  • Bill Bennett on Tech