1 May 2014
NZ govt would be satisfied with a 'slightly' lower Kiwi
FXStreet (Bali) - An overnight article by Fairfax NZ News cited NZ Prime Minister John Key, who referred to a potential decrease in value by the Kiwi as not necessarily better for exporters, adding that the Government wants only a "slightly" lower rate.
Key Quotes - Fairfax NZ News
"This week the Government appears to have performed an about-turn on its stance on the strength of the dollar, which has previously been described as "unsustainable" when at similar levels to today."
"In general terms, a lower dollar assists exporters by making our goods cheaper overseas, but it also makes imported goods more expensive, potentially making it politically unpopular."
"Key said yesterday that exports were performing strongly, with Statistics NZ figures showing a record $5 billion in goods exported in March. "Exporters are doing well. We're selling more to the world than we're buying from the world."
"Some, but not all, would benefit if the dollar was weaker, Key said, depending on the circumstances."
"If the reason was because commodity prices were considerably lower, then the answer to that is not necessarily."
"Of course, we'd like to have a bit of both, a slightly more competitive exchange rate, but certainly [a] more innovative economy," he said.
"You've just got to be careful what you wish for because a substantial reduction in the exchange rate would certainly see a lot of consumer goods that consumers in New Zealand buy go up in price."
Key dedicated more of his answers to the risks faced by consumers if the dollar were to fall, rather than the impact on the economy. “You’ve just got to be careful what you wish for because a substantial reduction in the exchange rate would certainly see a lot of consumer goods that consumers in New Zealand buy go up in price.”
Key Quotes - Fairfax NZ News
"This week the Government appears to have performed an about-turn on its stance on the strength of the dollar, which has previously been described as "unsustainable" when at similar levels to today."
"In general terms, a lower dollar assists exporters by making our goods cheaper overseas, but it also makes imported goods more expensive, potentially making it politically unpopular."
"Key said yesterday that exports were performing strongly, with Statistics NZ figures showing a record $5 billion in goods exported in March. "Exporters are doing well. We're selling more to the world than we're buying from the world."
"Some, but not all, would benefit if the dollar was weaker, Key said, depending on the circumstances."
"If the reason was because commodity prices were considerably lower, then the answer to that is not necessarily."
"Of course, we'd like to have a bit of both, a slightly more competitive exchange rate, but certainly [a] more innovative economy," he said.
"You've just got to be careful what you wish for because a substantial reduction in the exchange rate would certainly see a lot of consumer goods that consumers in New Zealand buy go up in price."
Key dedicated more of his answers to the risks faced by consumers if the dollar were to fall, rather than the impact on the economy. “You’ve just got to be careful what you wish for because a substantial reduction in the exchange rate would certainly see a lot of consumer goods that consumers in New Zealand buy go up in price.”