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

 

OceanaGold: Man Killed In Waihi Mine Accident

A 29-year-old man had died following a work place accident at OceanaGold mine, Waihi last night. The man was killed after the front end loader he was in rolled down a slope. The accident happened at approximately 6.30pm on Thursday night. More>>

ALSO:

Constructing Consent: Annual Housing Consents Highest In Over A Decade

More than 29,000 new homes gained building consent in the year to June 2016, up 16 percent from the previous June year, Statistics New Zealand said today. More>>

ALSO:

War Against Weevil For Future Peas: “No Peas, No Weevil” Ban Now In Place In Wairarapa

The Ministry for Primary Industries (MPI) has today placed a ban on growing peas within a specified area and placed controls on moving pea material (seed and untreated pea straw) within, in and out of this area for the next 2 years. More>>

ALSO:

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news