NZ ups reserves as "insurance"

"While it is an unlikely event for a well-managed economy with a floating exchange rate, the New Zealand economy cannot afford to face a situation of a non-convertible currency," Orr said.

The proposals, originally made in early March, are necessary because the FX market has grown since the bank’s current reserve level was "largely set" in 1984, he explained.

However, intervention would be kept to a minimum. "We do not intend wasting our reserves by defending a particular exchange rate level

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services -, or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to FX Markets? View our subscription options

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: