Australian papers praise dollar move

Press, 20 July 1984, Page 3

Australian papers praise dollar move

NZPA-AAP Sydney Australian newspapers yesterday generally commended the New Zealand Government for its decision to devalue the dollar 20 per cent. The “Financial Review” responded to the devaluation by saying the decision ought to be welcomed by the Australian Government and all well-wishers of New Zealand. It said that the Prime Minister-elect, Mr Lange, had taken a courageous first step towards correcting the imbalances in the New Zealand economy but said that he had a long and arduous

path ahead of him. The “Review” said it would be advisable not to appreciate the New Zealand dollar but to allow it to float. The “Sydney Morning Herald” also foreshadowed a move by the New Zealand Government to float the dollar after an examination of the benefits of such a move. It said that devaluation of the dollar was inevitable because of the country’s heavy international indebtedness. The “Australia” newspaper also considered the devaluation inevitable

“despite the charade that preceded it.” “The newly elected Government had no choice other than a decisive devaluation but it has given no indication that it understands the follow through which is needed.” The “West Australian” said that the bold decision by Mr Lange to devalue the dollar 20 per cent indicated he had the strength of leadership that New Zealand .needed. “New Zealand’s serious economic problems demand decisive action and Mr Lange has demonstrated a preparedness to take it.”