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Exchange Rate of NZ since 2000

Exchange Rate of NZ since 2000. Japson. Jamez. Abhi. In this presentation we will be talking about the pattern in the Exchange rate in NZ and how it effects the New Zealand economy. Exchange Rates.

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Exchange Rate of NZ since 2000

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  1. Exchange Rate of NZ since 2000 Japson Jamez Abhi In this presentation we will be talking about the pattern in the Exchange rate in NZ and how it effects the New Zealand economy.

  2. Exchange Rates • A floating exchange rate (what NZ has) is when a currency’s value is allowed to fluctuate according to the foreign exchange market. The opposite is a fixed exchange rate (means it does not move). • Our exchange rate was made floating 27 years ago in 1980. It has been a clean float till last week when the reserve bank decided to sell NZD in the Forex

  3. Trends • The trend for the New Zealand exchange rate in the last 7 years is that the dollar has strengthened against the US dollar. Take a look at 2000 onwards and you will see a huge change.

  4. Main Reasons for Trend • USD weakening because of 9/11 • Interest rates in NZ 2002 • The official cash rate (OCR) has risen from 5.25% to 8% to control inflation. • Sports events like the America’s Cup and the Lion’s Tour.

  5. Implications of the new Exchange rates • Exporters suffer from this because as the NZ$ goes up, less people will buy our goods. Many NZ companies reduced operations. • Imports, big impact on what we can buy. • Foreign exchange students • Tourism

  6. Reserve Banks actions • Exchange rate floating S NZ • Decreased value of NZD. RBNZ governor Allen Bollard put 2 billion NZD back into the economy. This was done to push down the value of the NZD. • Reserve bank has increased OCR three times this year already. This is done to help people save more.

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