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 LandlordThe 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
There’s been a rallying of the market with the latest REINZ data showing both sales volumes and median house prices noticeably up with the onset of Spring.
There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.
Auckland-based commercial property disrupter, Jasper, has raised $2.3 million in seed funding following investment from European asset manager M7 Real Estate.
LVR speed limits continue to have a "strong effect" on investors, according to CoreLogic, after the latest Reserve Bank data showed a drop in investor borrowing.