Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Currency Intervention - not enough bang for buck

Currency Intervention - not enough bang for your buck

Currency intervention, which is on the launch pad awaiting its final sign-off from Cabinet, will prove to be about as effective as a pop gun in a bank robbery, says National Party Associate Finance Spokesman John Key.

Mr Key is responding to an announcement by the Governor of the Reserve Bank, Allan Bollard, that the bank will formally seek approval from the Minister of Finance for the authority to intervene in the currency.

"As much as we all have sympathy for the current plight of exporters, currency intervention is the equivalent of a financial mirage," says Mr Key.

"In many respects currency intervention is not dissimilar to tinsel on a Christmas tree - it looks nice, and makes everyone feel better, but it achieves very little.

"International evidence indicates the risk-reward ratio doesn't stack up in the case of intervention. "At best you might knock a cent or two off the top or the bottom or the range, but you are more likely to create a false hope and a large public liability along the way.

"We are under no illusions about the value of our exporters to the New Zealand economy. Unfortunately, while it may well prove to be a money maker for the bank, it's very unlikely to do anything about the medium to long term direction of the exchange rate," says Mr Key.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Werewolf: Safe Landings Gordon Campbell on the safety challenge to the Wellington runway extension.

The safety-related legal challenge revolves around the size of the 90 metre long Runway End Safety Area (RESA) being proposed for the runway extension. More>>


Environment Commissioner: We Need To Work Together On Climate Change And Farming

“The debate around agricultural emissions and the ETS has been polarised for too long,” said the Commissioner. “But the ETS is not the only way forward – there are other things that can be done.” More>>


NZ Super Fund: Seeking To Put A Market Price On Climate Change

Oct. 19 (BusinessDesk) - The New Zealand Superannuation Fund says it will devise a set of rules to assess investment winners and losers under climate change, a strategy that could rule out fossil fuels or producers such as current portfolio member Exxon ... More>>


Rejuvenation: Parata Will Not Contest 2017 Election

Education Minister and National List MP Hekia Parata has today announced that she will not be contesting the next election. She advised the Prime Minister of her decision earlier this year. More>>

Prisons Grow: Government Approves Plans For Increased Prison Capacity

Despite significant progress in reducing crime the number of prisoners has increased faster than projected. This is because the proportion of offenders charged with serious crimes has risen, meaning more people are being remanded in custody and serving more of their sentences in prison. More>>


Gordon Campbell: On Plastic Bag Activism, And Street Harassment

Amusing to see the Act Party experiencing another outbreak of young fogey-ism. What has aroused the ire of Act Leader David Seymour this time is the introduction of a Greens private members bill to the ballot process, calling for a 15 cents levy on plastic bags to reduce pollution. More>>


Unclear Weapons: US Navy Ship Cleared To Visit NZ For Navy's 75th

United States Navy ship, the USS Sampson, has been given clearance to visit New Zealand next month by Prime Minister John Key... “The process for considering the visit by the USS Sampson is the same as that used for all ships attending the International Naval Review." More>>


P Policy: $15m Allocated To Tackling Drug Abuse

Almost $15 million dollars seized from criminals will be invested in anti-drug initiatives, with more funding for Police and Customs and a greater focus on treatment for drug abusers, Prime Minister John Key says. More>>


More Or Less Democratic Countries: Fiji Prime Minister To Visit NZ

“This will be Prime Minister Bainimarama’s first official visit to New Zealand as Fiji’s Prime Minister,” Mr Key says. “New Zealand and Fiji have strong ties in a range of areas, and the Prime Minister’s visit presents a further opportunity to discuss issues of mutual interest.” More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news