Genesis

The NZ govt. have stepped in to dampen the soaring kiwi$ today. Mainly in relation to the US$ I think. It almost got to .75US$ for a kiwi$ today but has fallen after govt. intervention. I am not sure what they do to it to make it fall..anyone know, apart from sell shed loads or take 7 points off the interest rate?

But it looks like the kiwi will weaken soon if Mr Bollard has his way. I ask you, about the millionth interest rate hike in 12 months and he wonders why its going thru the roof. You know you can get almost 7.5% interest on a current e-account in NZ???? Alas that means the mortgage rate is also spectacularly high!!!!!

P2L

According to NZ Herald he has done exactly that, sold a shedload!! He could've have given it away to me, I'd have used it wisely!

It's the first time they have ever had to intervene, I guess it's a inflation v export/import market decision that will probably never trickle down to the likes of you and I, unless by some miracle we wake up tomorrow and the £ v NZ$ is back up at $3!! ( PLEASE,PLEASE,PLEASE if anyone out there is listening! )

Am Loolah

Obvious advice, don't bring your £'s over at the moment. They won't know how effective this is until todays European trading but it's already weakened here today.

Oh if only I were rich?!

P2L

The Rerserve Bank has bought up to $1.5 billion today!!

Mr Cullan knew nothing of the transaction until it had gone through. At the moment the NZ$ has been devalued by around 1.5% on the world markets.

I wonder if this will be a continuing trend or a 'hiccup' for the next week or two?

danny.f

If only I knew what the shiiiiiite you were all talking about. Unless it directly affects the price of either coffee,or imported Jaffa Cakes.........

RobClubley

I was thinking something similar

I want the dollar to weaken so I can transfer my UK pension.

But I like it to be strong so I can buy car parts cheaper from teh US.

Damn.

teambwr47

Why would you want the NZ$ to get weaker and weaker?

The only time thats of use is when you first move and transfer cash to NZ after that unless you are keen to never travel outside NZ or buy things outside of NZ then the weaker the NZ$ the worse off you will be.

The weaker the NZ$ means the weaker your wage is effectively.

Personally i'd like to see the NZ$ get stroner and stronger which will mean the money earned in NZ goes further in the wider world.

mickey_d

The weaker the better for me, I still earn in £'s

mickey_d

[QUOTE=RobClubley;4916801]I was thinking something similar

I want the dollar to weaken so I can transfer my UK pension.

QUOTE]

Same here.

ballsrburning

yep the weaker the dollar the better for me too, I want to exchange my money for $4 to the pound. sounds liek good news to me.

mickey_d

$6 would do me, I would only have to work half as much

Paladin

The only thing that numpty Bollard will accomplish is giving the currency speculators something to shoot at - what an idiot! With interest rates at 8%, cheaply borrowed Yen will keep wanting find a home in NZ Kiwis so he's on a hiding to nothing: evidence - he managed to drive the rate up 6 cents and its already down 2 cents from there, so he's lost a third already - moron!

lardyl

doh, the voice of Thatcher and Lawson reverbeth in mine ears.......reduce borrowng/the money supply and calm inflation at any cost............doesnt anyone ever learn!!???? ask the poor sods who actually produce something - you know manufacture or export, the sort of thing that makes us all money so we can spend it, rather than just print the stuff!!
up the workers, down the interest rates, death to property developers and currency speculators - maggots!!!1111!!!!1111111111!!!!!!!!!!!!!!!!!11111 11111
begone thou enemies of industrial endeavour and friends of the trans-national captialist investor pig-dogs........

kiwi_child

Well you wouldn't want it to get weaker and weaker,but sometimes devaluing it slightly can boost thing due to making the currency more attractive to foreign buyers and also foreign investors.

How much is too much can be a controversial topic. It's not soemthing that should be done too often or too highly. And yes it does it does lead to some inflationary aspects as it drives internal prices up.

I suspect it was thought that the NZD was overvalued but personally I wonder about that. The AUD is around 84c US. so really it is the USD that has weakened IMO.

brussels_sprout

I have to agree with Paladin on this one, the NZ finance minister is just repeating the mistakes of Norman Lamont, (but without a call-girl tenant), he is wasting tax-payers money, the wealth of NZ is a drop in the ocean compared to the Hot-Money of speculators. The NZD will just go up and up in the short term now, NZD exports will be severly hit, but hopefully the outrageous house prices will start to flag too.
I have just noticed lardyl's post which says the same thing (but in a better, more amusing way)