What you may not know about New Zealand’s dollar: The NZD is the currency of New Zealand, and it has lost almost 70% of its value since November last year.
It’s been a volatile currency since it began trading in the late 19th century, when the country’s government, after years of war, began printing currency to finance the construction of the Pacific Railway.
But since then, the NZD has fallen by around 30% of a nation’s purchasing power.
So what’s going on?
For starters, the US dollar has been gaining value over the past few months.
The NZD’s value has surged over the last year, but it’s been trading near zero since the start of March.
Since then, US markets have begun to rise, and the currency has risen by around 3% a year, making it by far the most expensive currency in the world.
That makes it more expensive than other currencies, and more difficult to print money to fund the construction.
The currency also faces inflation risks, as New Zealanders struggle to access credit, as the government has been printing more money than it can spend.
New Zealand’s central bank has warned that inflation could rise by more than 10% next year, though it’s not yet clear how this could affect inflation.
And as the New York Times reports, the country could be heading for a crisis of sorts if it’s unable to pay back its creditors, which include the US government.
“We are currently facing a potential run on government debt, and if we don’t do something about it we are going to see the US federal government bail out our country,” Prime Minister Jacinda Ardern told reporters in Auckland last week.
“I would not want to be one of those people that puts the economy on hold.”
The New Zealand government is considering how to raise interest rates.
If it does so, the government would have to use more of the country ‘debt bonanza’ to pay for new infrastructure projects, such as the $1.3 billion bridge that’s under construction between Auckland and Hamilton.
The money would then be paid back through interest on the debt, which would be repaid over time.
In other words, the Government could be using a lot of money it has already borrowed to pay down its debt, so the Government needs to be careful not to blow the budget.
Ardern said the budget was “in good shape” and “we don’t have to make any radical changes”.
But, she added, the budget would be “better than it was in 2016” because of the US budget deal.
However, the latest report by the Bank of England, which economists use to calculate the size of the economy, shows the economy contracted by 0.1% in the third quarter of 2017, and by 0,1% for the first three months of 2018.
A report from the Reserve Bank of New South Wales also noted the economy’s contraction, and said the government was “not meeting its fiscal targets” and the economy was “at risk of overheating”.
Meanwhile, the Reserve has warned there are “very high” risks of a repeat of the global financial crisis, which occurred in 2008 and caused the global economy to implode.
With a weaker currency and lower economic growth, there are fears the global economic system could come to an end in the next couple of years, with the collapse of the Chinese economy potentially triggering a global recession.
According to the latest IMF World Economic Outlook report, the global recovery will be slow and gradual, with growth slowing in 2018.
But the IMF predicts that the global slowdown will continue for the next three years.
What is the New Year’s resolution?
The main reason the NZ dollar is volatile is because of its use in the Asian markets, where there’s a large market for the currency.
As the New Yorker points out, “it’s hard to imagine that the value of the New Zealander’s dollar will rise substantially from here.”
For example, the currency traded in Singapore, Malaysia, and Hong Kong for about the last 10 years, and in China for about five years.
The dollar is also used as a means of hedging against inflationary risks, and this is a key reason it has been rising in value.
While the New World’s dollar is not a currency of choice for people in developing countries, it’s still an important currency in developed nations, and its volatility makes it a better choice than the US Dollar.
How to buy New Zealand dollars?
You can buy New Zealands worth in New Zealand at the local bank, or you can buy them on the black market.
If you’re shopping for New Zealand Dollars at a bank, you’ll need to use a credit card to pay the transaction fee, which can range from 0