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

 


Active Central Banks

Active Central Banks – 8 May
The Reserve Bank of New Zealand (RBNZ) has admitted to intervening in currency markets responding to the appreciation of our currency, say the New Zealand Manufacturers and Exporters Association (NZMEA).

NZMEA Chief Executive John Walley says, “It is good to see the RBNZ make some moves to lower our currency, but they can do much more than “take the top off the rallies”. The sharp drop in the currency across the board shows just what action from a central bank can do. If the RBNZ were to commit to a more long term set of actions to bring down the currency, we would see a sustained effect on the dollar. This could be achieved through a co-ordinated mix of currency intervention, monetary policy and other macro-prudential tools.”

“We consistently reference the example for the Swiss Central Bank using the infinite capacity of a central bank to place and enforce a currency ceiling.”

“The Reserve Bank of Australia (RBA) has also cut a further 25 basis points off its cash rate to a record low 2.75%. They are taking action against the appreciation of their currency.”

“Much of Australia’s recent economic success has been built on the back of their strong natural resource based businesses. Now their exporting sector is struggling, largely due to strength of their currency.”

“Why is this important for New Zealand? Australia has been a bright spot for exporters in recent times; meaning businesses exporting to Australia for Australian consumption have been doing okay, compared to those selling into the U.S and Europe. The RBA takes action to lower the pressure on the AUS$ and places upwards pressure on the NZ$; this will hurt New Zealand exporters.”

“We are pleased to see the Reserve Bank of New Zealand (RBNZ) commit to putting new tools into place for increasing reserves for high Loan to Value Ratio loans as well as some currency intervention.”

“Even so, our dollar remains significantly overvalued, hurting exporters.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news