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Problems with high NZ Dollar

Member rating: No Rating | Words: 726 | Submitted: Sat Jul 28 2007

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"The New Zealand dollar has reached very high levels recently, driven by US dollar weakness and New Zealand's heavy demand for borrowing." As was recently said by Alan Bollard, the Governor of the Reserve Bank. The NZ dollar is currently sitting at US 81c, the highest it has been in over a quarter of a century. It may be argued that a high NZ dollar has some advantages, such as the cheaper imported goods, however it also has many disadvantages. One problem is that our dollar has greatly affected most export-led businesses, putting some on a "knife-edge". ADVANTAGES "The higher the New Zealand dollar goes, the cheaper imported goods get." The high NZ dollar has brought some benefits to our economy, namely the import bargains. As the dollar continues to soar towards the US 85c mark, the prices of all major goods are plummeting down. For example, in Noel Leeming Compaq Laptops...

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