Tag: Currency

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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The FIRE Economy: New Zealand’s Reckoning – By Jane Kelsey

Opinion – Professor Jane Kelsey The global economy imploded in 2008 and confirmed a stark reality. Entire nations and billions of people are captives of an unstable and amoral economic system powered by finance , insurance and real estate FIRE. [1] New Zealand included. Click to order a copy from the Publisher The FIRE Economy: New Zealand’s Reckoning By Jane Kelsey Introduction – An Extract The global economy imploded in 2008 and confirmed a stark reality. Entire nations and billions of people are captives of an unstable and amoral economic system powered by finance, insurance and real estate – FIRE. [1] New Zealand included. ‘The FIRE economy’ is a metaphor for the fundamental shift in global capitalism since the 1970s. Finance has replaced industry as the driver of wealth creation in affluent countries – a transformation known as financialisation. Neoliberal ideology, rules and institutions acted first as the midwife and then as the guardian of this new economic order. The Global Financial Crisis (GFC) showed the world’s richest countries, notably the US and the nations of Europe, that the globally integrated economy they had created, and from which they have prospered, could also bring them to their knees. Faith in the neoliberal ‘orthodoxy’ that shaped and sustained them seemed shattered. The fallout was fast and furious, and quickly spread to many other parts of the world. A cursory look...

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Gordon Campbell on our IS counter measures and the TPP

Column – Gordon Campbell There are two dimensions to the security measures announced yesterday: (a) the deployment of New Zealand forces in training roles inside Iraq, and (b) the expansion of SIS powers to monitor and intercept any budding jihadis here at home. Gordon Campbell on our IS counter measures, Forbes’ hostility to the TPP, and CNBC’s idiocy by Gordon Campbell There are two dimensions to the security measures announced yesterday: (a) the deployment of New Zealand forces in ‘training” roles inside Iraq, and (b) the expansion of SIS powers to monitor and intercept any budding jihadis here at home. It seems unlikely that any Islamic State fighters will be quaking in their boots at the added threat New Zealand will now pose to their actions on the battlefront, or to their recruitment activities on the Internet. Given that the overall aim of these measures is the one announced weeks ago by President Barack Obama – to contain and eventually destroy the Islamic State – it’s doubtful that a handful of Kiwi trainers will make any noticeable difference to the outcome in Iraq, even while it creates a more tangible risk to New Zealand, now that we’ve signed up to the coalition of the willing. That’s only one part of the trade-off. On the detail released so far, the measures seem likely to be less effective at checking the...

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iPredict Ltd 2014 Election Update #15

Column – iPredict iPredicts 7000 registered traders continue to believe Winston Peters NZ First party will hold the balance of power after the election and allow National to govern. There has been a small gain to Act and the Conservatives over the last week and a … iPredict Ltd 2014 Election Update #15 24 April 2014 www.ipredict.co.nz Key Points: • Inflation and interest rate expectations ease marginally • 31% probability Helen Clark will become UN Secretary General • Ruth Dyson in trouble in Port Hills • Act gains over last week with 3 MPs now forecast • Conservatives’ chanced edge up in East Coast Bays • Mana/Internet would win 3 MPs • NZ First to hold balance of power and allow National to govern Commentary: iPredict’s 7000 registered traders continue to believe Winston Peters’ NZ First party will hold the balance of power after the election and allow National to govern. There has been a small gain to Act and the Conservatives over the last week and a weakening of the Maori Party’s position. A Mana/Internet electoral arrangement is expected to give the parties 3 MPs. Port Hills has become the most marginal seat in the country followed by Hamilton East. Inflation and interest rate expectations have eased. Economic Context Growth expectations have eased fractionally again this week. Growth in the March 2014 quarter is expected to be 1.0%...

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Gordon Campbell on New Zealand’s currency deal with China

Column – Gordon Campbell During Prime Minister John Keys current visit to China, Key and Chinese premier Li Keqiang agreed to a deal that enables direct trading on the Chinese Foreign Exchange between the NZ dollar and the Chinese renimbi (aka yuan). Gordon Campbell on New Zealand’s currency deal with China by Gordon Campbell During Prime Minister John Key’s current visit to China, Key and Chinese premier Li Keqiang agreed to a deal that enables direct trading on the Chinese Foreign Exchange between the NZ dollar and the Chinese renimbi (aka yuan). It is easy to see how New Zealand exporters stand to benefit. Kiwi firms will no longer need to shift payments and earnings back and forth via a third currency, usually the US dollar. Considerable savings will be made on these transactions. New Zealand has become the sixth country to engage in direct currency trading with China, after Australia did so last April. This was the same month that New Zealand – which appeared to have been caught on the wrong foot by the Australian move – initiated its own negotiations with China, for similar status. Japan had clinched a similar deal in mid-2012 and Brazil signed its own direct currency trading deal in March, 2013. So, what is in it for China? While not significant in itself, the New Zealand deal is part of a world...

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