Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Exchange rate costs exporters $10.4 billion in 3.5 years

Exchange rate costs exporters $10.4 billion in 3.5 years

An overvalued exchange rate has cost exporters $10.4 billion over the past three and a half years. The New Zealand Manufacturers and Exporters Association (NZMEA) are calling for action on the exchange rate to prevent further losses.

In February 2009 the NZ Dollar bottomed out at 52.3 on the Trade Weighted Index (TWI), but since then currency manipulation overseas and inaction in New Zealand have seen the NZ Dollar TWI rise to 72.9 in August. For every one percent the currency rises it costs New Zealand exporters approximately $200 million on an annual basis. Between February 2009 and August this year the NZ Dollar rose by 20.6 percent, and it has averaged 14.8 percent above the February level over the last three and a half years.

NZMEA Chief Executive John Walley says, “It is no wonder that we are seeing job losses in coal and aluminium with a statistic like this. To put this in perspective New Zealand’s total annual merchandise exports are around $45 billion, so this is a hugely significant number compared to the margin on those sales.”

“Claims that nothing can be done to manage the exchange rate impact are only true in the context of our chosen macroeconomic framework - there are alternatives. Witness the international evidence from countries such as Switzerland, the United Kingdom and the United States, that efforts to control exchange rates can and do work.”

“The policy contrast between New Zealand and those countries making different choices is the primary reason behind our overvalued exchange rate as Reserve Bank Governor Alan Bollard’s comments attest to. Measures such as reducing Government debt will help somewhat but more deep-seated action must be taken.”

“Overhauling our economic framework with a focus on a balanced current account is long overdue. We must use whatever means necessary. Strategies used around the world have demonstrated there is no lack of means, what is missing here is the will.”

ends


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines



Gordon Campbell: On Canada’s Election, And The AUKUS Defence Pact


Yesterday, Canada held an election in which everyone lost, including the voters. After holding its most expensive ( $C600 million) election campaign ever, the result was Groundhog Day, with the five main parties getting almost exactly the same number of seats as they did last time around, in 2019. Same overall result too: Liberals leader and PM Justin Trudeau will once again be leading a minority government... More>>

Covid-19, 26/9: 1,165 Overall Cases, 5,000,000+ Vaccine Doses


18 new cases have been discovered in Auckland, currently at Level 3. 934 of the Auckland cases have recovered alongside all of the Wellington cases... More>>

ALSO:




 
 

Government: Next Steps To Improve Safety In Wake Of Whakaari White Island Tragedy
The Government is moving to improve safety in light of the Whakaari White Island tragedy and has released proposals to reinforce safety standards in registered adventure activities... More>>

Government: Expert Group Appointed To Lead New Zealand’s Future Health System
An outstanding group of people with extensive and wide-ranging governance and health experience have been appointed to lead the Māori Health Authority and Health New Zealand, Health Minister Andrew Little says... More>>

ALSO:

Green Party: Kiwis Overseas Must Be Allowed To Vote Next Year
New Zealanders stranded overseas should be allowed to vote in next year’s local government elections and the 2023 general election, the Green Party said today. “The reality of this pandemic is lots of people cannot renew their voting rights when they are home as they normally would... More>>


Power: Bill Changes Bring Fairness To Charges

A key recommendation of an independent panel to make electricity charges fairer across all households will be put in place, the Energy and Resources Minister Megan Woods has announced... More>>



Government: Parks expiry of licenses, WoFs and regos
As a result of the Delta outbreak, driver licences, Warrants of Fitness (WoFs), Certificates of Fitness (CoFs), vehicle licences (‘regos’) and licence endorsements that expired on or after 21 July 2021 will be valid until 30 November 2021, Transport Minister Michael Wood has announced today... More>>



Child Poverty Action Group: Highest jump in weekly benefit numbers since first lockdown

The current lockdown has triggered the largest weekly increase in benefit recipient numbers since the first lockdown last year, and Child Poverty Action Group is concerned the Government isn't doing enough to assist affected families... More>>


 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels