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

 


Key says high NZ dollar has benefits

Key says high NZ dollar has benefits

Jan. 25 (BusinessDesk) – While other countries like Japan manage their currencies lower, New Zealand Prime Minister John Key says there are benefits to a strong exchange rate, even as it creates headaches for exporters.

In his state of the nation address in Auckland, Key said prices for primary exports are holding up and the country’s terms of trade remain high.

That is helping to support a high New Zealand dollar, which is proving a head wind for other exporters and firms that compete with imports, Key says.

“But the flipside of a high dollar is that goods priced on world markets are cheaper than they otherwise would be,” the former foreign exchange dealer said.

“This includes goods that are crucial to households like food, clothing and fuel.”

The low prices are keeping inflation down and businesses are taking advantage of cheaper capital goods to invest in plant and machinery.

His comments come as BNZ economists predict that the New Zealand dollar will be strong for much of 2013.

The bank has an end-year target of 81.00 US cents, which compares with 83.65 cents in afternoon trading.

It says the liquidity being sprayed around by the big central banks around the world merely reinforces the fact that the New Zealand economy is in a better position.

BNZ forecasts the kiwi will fall to 74.00c by mid-2014 and 70.00 cents by mid-2015.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news