Annual Check Of New Zealand Economy Dollar Level

The New Zealand dollar is overvalued by between 5% to 15% the International Monetary Fund reckons, but it counsels caution in altering the Reserve Bank Act in the hope of addressing that. Let’s the  terms of trade at a 40-year high the dollar is stronger than would be reliable with stabilizing the country's net foreign obligations over the long track, it said, and on that basis the kiwi looked to be overvalued.

The head of the International Monetary Fund (IMF) mission, Brian Aitken, placed the overvaluation between 5% to 15%, a variety that reflected the uncertainty complicated in quantifying such things.

 In addition to the strong terms of trade, features contributing to the dollar's strength are the gap between New Zealand and foreign interest rates, the country's favorable evolution outlook and an appetite for what are seen as moderately safe assets.