Bank defends exchange-rate system
PA Wellington 1 The Reserve Bank of New I [Zealand has described the •[comments on Nev. Zealand’s I exchange rate policy made by . I the "Internationa! Currency >j Review” as revealing a complete misunderstanding of ; New Zealand's . exchange-rate ! system. The bank said that there had been no change since August 1975 in rhe overall [ effective value of the New Zealand dollar. , “There have, of course, , been changes against individual currencies, but the use of . the basket system has been a ! stabilising influence rather than a destabilising factor. “As the review itself notes the appreciation of 16 per cent against the pound sterl-; ing since August 1975 has been offset by depreciations : again st other stronger currencies. I “The United Kingdom is still a substantial trading account of our trade with that country in establishing the value of the New Zealand dollar. “Some other currencybasket would have produced a different result, but the New Zealand basket, weighted according to the pattern of current exchange transactions, is the most appropriate system for New Zealand, because it maintains the over-all value of the New Zealand dollar against the currencies of New Zealand’s main trading partners, taken as a group. “Any other basket or link to any single currency would, in present circumstances, be! less appropriate,” the Reserve! Rank caid
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/CHP19761117.2.138
Bibliographic details
Press, 17 November 1976, Page 27
Word Count
220Bank defends exchange-rate system Press, 17 November 1976, Page 27
Using This Item
Stuff Ltd is the copyright owner for the Press. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Copyright in all Footrot Flats cartoons is owned by Diogenes Designs Ltd. The National Library has been granted permission to digitise these cartoons and make them available online as part of this digitised version of the Press. You can search, browse, and print Footrot Flats cartoons for research and personal study only. Permission must be obtained from Diogenes Designs Ltd for any other use.
Acknowledgements
This newspaper was digitised in partnership with Christchurch City Libraries.
Log in