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New Zealand Economic and Financial Overview 2014

Foreign-Exchange Rates

The New Zealand dollar has floated freely since March 1985. There are no exchange controls on foreign-exchange transactions undertaken in New Zealand. Foreign reserves are held primarily for the purpose of intervention in a crisis situation, when there may be no 'market makers' in the New Zealand dollar.

In 2004, after consultation with the Minister of Finance, the RBNZ gained the capacity to intervene in the foreign-exchange market to influence the level of the exchange rate for monetary policy purposes. The Bank has noted that such intervention may occur when the exchange rate is exceptional and unjustified on the basis of economic fundamentals and when doing so is consistent with the Policy Targets Agreement.

The Bank does not generally comment publicly on such intervention. However, the Bank's net foreign-exchange position is disclosed publicly with a lag at the end of the following month.

Table 18 - Foreign Exchange Rates
  USA Mid-rate
US$ per NZ$
Japan Mid-rate
Yen per NZ$
Trade Weighted
Exchange Rate Index1

June Year Averages

     
2009 0.6374 61.63 60.3
2010 0.6928 62.96 67.1
2011 0.8150 65.63 70.3
2012 0.7801 61.92 70.8
2013 0.7908 76.97 74.00

Monthly Averages

     
July 2013 0.7884 78.60 74.79
August 2013 0.7922 77.49 74.75
September 2013 0.8125 80.63 76.22
October 2013 0.8349 81.71 77.23
November 2013 0.8265 82.59 77.20
December 2013 0.8228 85.06 77.50
January 2014 0.8282 86.04 78.40
  1. The Trade-Weighted Exchange Rate Index is calculated on the basis of representative market rates for a basket of currencies representing New Zealand's major trading partners. On 30 June 1979, the basket equalled 100.

Source: RBNZ

Figure 5 - Trade-Weighted Exchange-Rate Index
Figure 5 - Trade-Weighted Exchange-Rate Index.
Sources: RBNZ, the Treasury
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