New Zealand: Selected Issues
May 7, 2007
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This Selected Issues paper analyzes the underlying factors that explain the behavior of the Kiwi dollar. The findings suggest that the factors influencing the New Zealand dollar have been changing. The paper discusses that as New Zealand has become more integrated in global capital markets over time, the Kiwi dollar has become less of a commodity currency and more of a global currency that is influenced by interest rate spreads and global risk factors. The paper also looks at the strong preference for housing over financial assets exhibited by New Zealand households.
Subject: Currencies, Exchange rates, External debt, Financial institutions, Foreign exchange, Housing, Housing prices, Mortgages, National accounts, Prices
Keywords: asset quality, Australia and New Zealand, bank, carry trade, commodity currency, CR, exchange rate, Exchange rates, Global, house price inflation, Housing, housing investor, Housing prices, interest rate, ISCR, Kiwi dollar, mortgage interest levy, Mortgages, New Zealand dollar, New Zealand dollar assets, NZD turnover, rental yield
Pages:
43
Volume:
2007
DOI:
Issue:
151
Series:
Country Report No. 2007/151
Stock No:
1NZLEA2007002
ISBN:
9781451830354
ISSN:
1934-7685
