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


Currency swing spotlights export growth risk

August 1st, 2013

Currency swing spotlights export growth risk

For our economic recovery to continue and based on exporting many of manufacturing exporters will need to diversify into markets beyond Australia, says Kim Campbell, chief executive of the Employers and Manufacturers Association.

"Times are tougher than for many years in Australia, our biggest market for manufactured goods, and the climbing trans Tasman cross rate is cutting into margins," Mr Campbell said.

"Early this year people were panicking over the high US dollar and the Australian dollar was low; now the position has reversed with a 10 per cent switchover for each currency.

"In fact the change is already taking a toll with manufactured exports to Australia down 4 per cent for the 12 months ended June 2013 to $6.1billion, excluding dairy, meat and wood pulp.

"Some years ago we were planning a parity party with Australia, followed most recently by several years of the most favourable trans Tasman cross rate ever. Currencies fluctuate.

"The answer to managing currency volatility is to diversify into new markets and invest in productivity gains through better equipment, skills development and innovation.

"A longer term solution in our own hands would be to increase our savings rate which would mean not having to rely so much on overseas capital to fund our voracious appetite for housing."


© Scoop Media

Business Headlines | Sci-Tech Headlines


The Download Weekly: Vodafone FibreX back in court

Vodafone and the Commerce Commission head back to court over FibreX in a week the TCF issues broadband marketing codes that should avoid similar problems in the future... More>>

NIWA: Tonga Eruption Discoveries Defy Expectations
New findings from the record-breaking Tongan volcanic eruption are “surprising and unexpected”, say scientists from New Zealand’s National Institute for Water and Atmospheric Research (NIWA)... More>>

Commerce Commission: Appeals Record $2.25m Fine In Vodafone FibreX Case

The Commerce Commission has filed an appeal in the High Court against a record $2.25 million fine imposed on Vodafone NZ Limited (Vodafone) for its offending under the Fair Trading Act during its FibreX advertising campaign. While the sentence imposed in the Auckland District Court on April 14 was the largest-ever fine under the Fair Trading Act, the Commission will argue that it is manifestly inadequate... More>>

Stats: Quiet Start For Retail In 2022
The volume of retail sales was relatively unchanged in the March 2022 quarter, following a strong increase in the December 2021 quarter, Stats NZ said today... More>>

Finder: RBNZ Survey: 64% Of Experts Say Rising Inflation Will Push More Kiwis Into Debt

Soaring inflation and cost of living pressures will see many households pushed to the financial limit, according to experts... More>>

Barfoot & Thompson: Rents Up By Around 3% In Most Areas

The average weekly rent paid for homes in most areas of Auckland has risen by around 3 percent year-on-year. The figures for end March from more than 16,000 properties... More>>