New Zealand exporters need to be competitive with the currency around 80 US cents, as the New Zealand dollar is staying around that level, Finance Minister Bill English says.
The currency hit a new four month high of 83 US cents overnight, and reached a new all time high of 63.2 euro cents. It is up from about 73 US cents in late November last year, after it had fallen from its all time high over 88 US cents at the start of August.
“It keeps moving back to 80 cents. We thought it looked like it was going to drop off in the latter part of last year, but it’s gone back up to 80 cents,” English said to media in Wellington today.
"The good news is that it maintains consumers’ purchasing power, so it’s helping them to pay off their debt, and our exporters have adapted to it pretty well. So despite the fact that it’s historically high, our manufacturing sector has been growing and our primary production sector's just had the biggest export quarter it’s ever had,” he said.
“I wouldn’t say ‘no worries’ – it’s a headwind. But we need to ensure our exporters can be competitive at 80 US cents, and they are showing the can be. I think that’s positive for our future.”
(Updates with video)
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11 Comments
From 4 millions to 7 millions by 2014 !
English says a lot. An interesting, but sad NZeconomic mix, which doesn’t help at all - agriculture, tourism and exporters our strongest financial performers hit by a high NZ$ - and worsening.
But there is help – “The NZpopulation Boom”
In the current worldwide circumstances, with many nations in trouble and upcoming unemployment, unrest and massive social problems, I suggest New Zealand should start a massive campaign, advertising rich, well behaved people to come and live/ work here in remote, under- populated, beautiful and peaceful Aotearoa. From 4 millions to 7 millions by 2014 !
That’s the way to go. I just think property sizes using for business need to be restricted for foreigners immigrating.
Hollywood movie mogul James Cameron is coming to live in Wairarapa - and he is bringing his family with him.
http://www.stuff.co.nz/entertainment/film/6349810/James-Cameron-plans-move-to-NZ
Wow... the Govt resigned..!!
“I wouldn’t say ‘no worries’ – it’s a headwind. But we need to ensure our exporters can be competitive at 80 US cents, and they are showing the can be. I think that’s positive for our future.”
Gosh...English must be getting embarrassed with his own rhetoric....
How come reporters let him get away with such inane nonsense.... so empty of content.
They should ask how he ensures that exporters are competitive.. :)
English makes the typical mistake of considering volume and not profitability. Exporting manufacturers I know that have "adapted to it pretty well" have seen their profit margins decimated and are abandoning investment such as R+D and new product development. Maybe he could let us know how much tax he expects to take in from the export sector this year?
Probably one of he most sensible commensts seen on here.
yes, we (NZ) are getting by, but very few companies are investing ion R&D or new equipment due to a lack of profit just trying to compete. This does not mean a bright future.
Cue the responses by house resellers saying we should try harder to be effecient - guess what if your house was suddenly 30% more expensive than the equivelent one next door due to nothing except something called the variable house exchange - then you would consider this unfair too.
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