Despite the G-20 talking down the prospect of a possible currency war being waged on the foreign exchange markets, New Zealand’s Reserve Bank Governor Graeme Wheeler has weighed into the debate saying that he is prepared to intervene to weaken the ‘Kiwi’.
Countries ranging from Brazil to the Philippines have warned that their currencies are too strong, signalling that they too are preparing to take action in order to weaken them. Wheeler said in a speech to manufacturers and exporters that he is “prepared to intervene to influence the Kiwi.”
Since the end of 2008 the New Zealand currency has soared by 45%, making it the biggest advancing currency behind its Australian relation. The talk of currency war was triggered after Japan took action to boost its struggling economy, which as a result saw the Yen go into free-fall against most of the world’s economies.
“There seems to be a sense that the gloves are off in terms of central-bank action in currency markets,” said Mitul Kotecha global head of foreign-exchange strategy in Hong Kong at Credit Agricole SA. “Wheeler’s comments are a clear reflection of the G-20 stance, wherein the green light appears to be given to any central bank that wants to intervene in the currency as long as they don’t talk about particular levels.”
Despite various nations and organisations claiming that a currency war was no on the cards it does seem increasingly likely that one could occur as nation’s try to weaken their currencies in order to boost exports. We could see the ‘Kiwi’ as well as other currency’s weaken as their respective governments intervene in the markets.
Current New Zealand Dollar Exchange Rates
The New Zealand Dollar to Euro exchange rate is currently trading at 0.6259
The New Zealand Dollar to Pound Sterling exchange rate is currently trading at 0.5439
The New Zealand Dollar to US Dollar exchange rate is currently trading at 0.8396
The New Zealand Dollar to Australian Dollar exchange rate is currently trading at 0.8108
The New Zealand Dollar to Canadian Dollar exchange rate is currently trading at 0.8491
The New Zealand Dollar to Emirati Dirham exchange rate is currently trading at 3.0837
The New Zealand Dollar to Swiss Franc is currently trading at 0.7725
The New Zealand Dollar to Japanese Yen exchange rate is currently trading at 78.409
These exchange rates were correct as of 09:45 am
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