Saturday, 29 December 2007

RBNZ Intervention disappears

The Reserve Bank of New Zealand (RBNZ) said on Friday it sold a net NZ$14 million ($10.8 million) of New Zealand dollars on the spot foreign exchange market during November.

The figure compares with a net NZ$10 million sold in October.

Back in June, the RBNZ sold a net NZ$736 million when it intervened on foreign exchange markets for the first time since the New Zealand dollar was floated 22 years ago to limit the rise in the kiwi. The figures are not a direct and complete indication of the amount spent on intervention and include liabilities of the New Zealand government's Debt Management Office.

Data from the central bank also showed its net short currency position - a figure which the RBNZ has said better reflects its currency dealings - rose to NZ$2.48 billion from NZ$2.4 billion in October.

Given that they began intervening at 0.7620 on 11 June 2007, their average is probably around 0.7700. So they are breaking even at present.

Lets hope they have learned, that it is best to let the markets find their own level.
What that true level is, nobody knows, least of all a central bank.


Channel Chanel said...

thank you :) i like your profile page... 'hot blondes' being the first and most highly rated interest.

i used to work at rbnz... funnily enough it wasnt the reserve bank though, rbnz is also the umbrella company for kfc, starbucks and pizza hut.... hopefully next time i admit to that ..dark... time in my life someone will mistakingly think it was the bank :>

Kiwi Trader said...

Well it was your blog, amongst others, that inspired me to set this up!! Was sad when you stopped posting.

This blog is still mostly about work and money stuff.
Haven't had the courage to open up other areas of my life yet. I'm just seeing how it goes for now.

Channel Chanel said...

i say go for it :) theres nothing like self indulgent waffle ... well besides intelligent insight into important matters ... but i dont really do that xx