Tag: Forex Currencies

TPP central banks to refrain from currency manipulation

Article – BusinessDesk Nov. 6 (BusinessDesk) – The Reserve Bank of New Zealand and its 11 counterparts in the Trans-Pacific Partnership trade and investment pact have agreed to avoid unfair currency manipulation as part of a regionwide push for greater cooperation, adopting … TPP central banks to refrain from currency manipulation By Paul McBeth Nov. 6 (BusinessDesk) – The Reserve Bank of New Zealand and its 11 counterparts in the Trans-Pacific Partnership trade and investment pact have agreed to avoid unfair currency manipulation as part of a regionwide push for greater cooperation, adopting an initiative pushed by the US Treasury. In a joint statement, central bank governor Graeme Wheeler and Treasury secretary Gabriel Makhlouf welcomed a declaration by the 12 monetary authorities, whose principal objective was to avoid unfair currency practices before passing legislation empowering the TPP. The declaration confirms each country’s monetary authority is bound under International Monetary Fund articles to avoid exchange rate manipulation or the monetary system to prevent effective balance of payments adjustments or countries from gaining an unfair comparative advantage. It will also require each central bank to disclose currency and trade flows, and opens up consultations between the authorities. “These commitments are consistent with New Zealand’s policy settings and line up with the commitments New Zealand has made as a member of the International Monetary Fund,” Wheeler and Makhlouf said. “New Zealand’s sound...

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Gordon Campbell on China’s devaluation, and Wolf Alice

Column – Gordon Campbell As Chinas currency takes the down elevator towards the basement and after two days of decline no one knows how far down it will eventually go its hard to see any good news for New Zealand. Our main export commodity (dairy powder) has … Gordon Campbell on China’s devaluation, and Wolf Alice As China’s currency takes the down elevator towards the basement – and after two days of decline no one knows how far down it will eventually go – its hard to see any good news for New Zealand. Our main export commodity (dairy powder) has already lost 70 % of its value over the past 18 months – and now everything we sell into our biggest export market (China) will cost more. Top use the ruling cliche, it’s a headwind. Demand will inevitably diminish, given that those much-prized customers in China’s emerging middle class will now have to pay more for New Zealand goods. Similarly, tourism from China – a recent bright spot for us – will also come under pressure, as Chinese tourists discover the bad news that their money will buy less, abroad. Supposedly, two main reasons have been driving this devaluation. The obvious one is that China’s economy is even weaker than suspected. Therefore, the devaluations are a method of shoring up sales abroad, thus keeping the factories and jobs...

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Gordon Campbell on parity with Australia & disarming Israel

Column – Gordon Campbell As the New Zealand dollar edges towards parity with the Aussie dollar, it seems facile to treat this as some game of Transtasman arm-wrestling that yay, were winning. The political rhetoric is all about our economic strength versus their … Gordon Campbell on dollar parity with Australia, and disarming Israel As the New Zealand dollar edges towards parity with the Aussie dollar, it seems facile to treat this as some game of Transtasman arm-wrestling that yay, we’re winning. The political rhetoric is all about our economic “strength” versus their “weakness.” Yet for starters, how much of the alleged NZD strength is being driven by currency speculators feasting on the high interest rates which our Reserve Bank feels impelled to maintain in order to control our out-of-control housing market? Meaning: is this currency high a sign of genuine economic strength, or has it been steroid-driven by speculation, in both currency and housing? Secondly, the rise against the Aussie dollar has run in parallel with a decline against the US greenback – which suggests that the source of these movements is not any across-the-board strength in New Zealand, but separate events in Australia and the US. In the case of Australia, a significant driver has been the slowdown in China, and the related decline in Chinese demand for Australia’s raw exports. Is the resultant “weakness” in Australia...

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Pharmac and ‘public interest’ bottom line for TPP: Goff

Article – BusinessDesk May 4 (BusinessDesk) – New Zealand should support the creation of Trans-Pacific Partnership free trade negotiations, but bottom lines should include the right to negotiate fair pharmaceutical prices through Pharmac and to regulate in the public interest. Pharmac and ‘public interest’ regulation bottom line for TPP, says Goff May 4 (BusinessDesk) – New Zealand should support the creation of Trans-Pacific Partnership free trade negotiations, but bottom lines should include the right to negotiate fair pharmaceutical prices through Pharmac and to regulate in the public interest. Speaking to the 10th New Zealand United States Council annual conference in Auckland, where the subject is the TPP, Goff pledged Labour’s support for a free trade pact which would create a new Asia-Pacific grouping, including the United States for the first time. But he proposed several “bottom lines”, including commitment to abolishing agricultural protectionism within the zone – a challenge not only for the US but other countries showing interest in the pact, including Japan, Canada and Mexico. The TPP is widely opposed by anti-globalisation activists and academics, with particular focus on the intellectual property demands made strongly by US negotiators, which they fear could undermine New Zealand sovereignty to unacceptable extents. A particular focus is Pharmac, the New Zealand government’s drug-buying agency, whose policy of buying lower cost generic drugs from secondary pharmaceutical manufacturers has been a source of...

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