The New Zealand Dollar has tumbled by 1% against Sterling and slumped to its lowest-level in a month against the US Dollar after China and Russia banned imports of milk powder produced by New Zealand’s biggest dairy producer, Fonterra Cooperative Group Ltd.
The ban came into force after Fonterra revealed over the weekend that a number of batches of one of its products could contain a harmful bacterium capable of causing botulism. In response Russia and China imposed a ban on imports of dairy imports from New Zealand.
“Dairy exports are a big deal, and exports to China are a big deal for dairy exports. If China puts a ban on officially and it lasts for a significant period of time, you’ll probably see further negative reaction in the Kiwi,” said Imre Speizer, a market strategist at Westpac Banking Corp based in Auckland.
The situation has seen New Zealand Prime Minister John Key question why Fonterra took so long to disclose the contamination, with the effected product being made in 2012.
“When your whole business is about food safety and food quality, you’d think they’d take such a precautionary view to these things and say if its testing for some reason in an odd way that the product would just be discarded till they’re absolutely sure it’s right,” said Key.
He added that Fonterra was New Zealand’s flagship and the issue went right to the “heart of undermining consumer confidence.
Current New Zealand Dollar (NZD) Exchange Rates
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The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.7802 <
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.5868 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5091 <
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8758
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9641 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.7041 >
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1417 >
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2345 >
(Correct as of 10:25 am GMT)
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