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| Posted By: ric Posted On: Jun 30, 2008 Views: 3371 | the kiwi With NZ home grown products more expensive at home than in London ( cheese, milk, apples ) it is a sure sign that the currency is way overvalued against the Euro. Down and more down. |
| Posted By: Abe Posted On: Jun 4, 2008 Views: 3396 | NZ Dollar Going down... and it will continue for the next few years. Sub 70c by end of the year. Way overvalued. |
| Posted By: poirine Posted On: Dec 24, 2007 Views: 4843 | NZ $ The NZ dollar is rightly valued right now and will stay this way for the next 2 or 3 years, as predicted by the central bank of new zealand. If you look at the exchange rate with the euro, it is the same as 1999: around .50 euros for 1 $NZ. You have to stop comparing the kiwi dollar with the US dollar. This last currency is not the yardstick it was before. The rise of the NZ$ in US$ is merely a consequence of the fall of the US$ against all currencies, which is a lasting trend. If you look at the euro/NZ$ parity, it is quite flat since 1999, with only a temporary bump in 2005. Plus the NZ is undergoing a "dutch disease" effect of the rising dairy and meat prices, fueling inflation, and the NZ central bank will keep high interest rates for the year coming for that very reason (see the last monetary policy report). There is no reason for the NZ$ to fall, the effect on exports will be compensated by the rising dairy and meat prices, and the strong NZ$ will prevent rising inflation of imported energy. As the Big Mac index shows, the NZ $ is not overvalued (or less so than the euro, 22% overvalued according to the latest Big mac issue). |
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