Millions 'at risk' in dollar dealing

Saturday 13 March 2004

The Reserve Bank could lose hundreds of millions of taxpayer dollars by trying to lower the Kiwi dollar, according to critics of what has been labelled a radical and astonishing new policy.

By The Landlord

The central bank yesterday asked the Government to allow it to intervene when the currency became "exceptionally and unjustifiably high".

After the announcement the dollar dropped sharply, ending around US65.7 cents – its lowest level for seven weeks.

Former Reserve Bank deputy governor Roderick Deane – at the bank during the last currency intervention in 1984 – said if it did intervene in currency markets it would "definitely be a radical shift" in policy.

It was out of line with what had been mainstream economic thinking around the world for decades, he said.

Read More - Opens in a new window
Commenting is closed

Property News

Consents fall could have been worse

New dwellings consents dropped in April. That didn’t surprise anyone but economists were surprised that the drop wasn’t bigger.

House Prices

House price drops are short-lived - Alexander

Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.

Commercial

Resilience needed in face of change

The Reserve Bank says the commercial property sector is vulnerable to the Covid-19 crisis. But PMG Funds' chief executive believes that while there’ll be short-term pain, the biggest long-term impact will be structural change.

Mortgages

Mortgage lending slumps to record low in April

Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.

Site by PHP Developer