The Reserve Bank of New Zealand Act enables the Reserve Bank to intervene in the foreign exchange market and requires the Reserve Bank to hold foreign exchange reserves to provide the capacity to intervene.
Balance Sheet Review
13 July 2007
In a news release the Reserve Bank announced changes to its financing and management of New Zealand's foreign currency reserves. The Reserve Bank will now hold some portion of foreign reserves on an unhedged basis - an "open FX" position. This means that part of the foreign reserves portfolio will be funded in New Zealand dollars rather than foreign currencies.
Foreign exchange intervention and the level
of reserves – Ministerial advice etc.
A selection of briefing materials relating to the Government's recent decision to increase foreign reserves and to provide the Reserve Bank with the capacity to use foreign exchange intervention as an additional monetary policy tool.
Foreign reserve risk management
Background documents on foreign reserve risk management.
Briefing on the Reserve
Prepared to brief the Government on the role and functions of the Reserve Bank. Our foreign reserves management function is located in the Functions of the Reserve Bank section.
External finance statistical
Data providing information on New Zealand's external position, including international reserves and foreign currency liquidity, selected account positions at the IMF and the liabilities owed by New Zealand residents to non-residents arising from the acquisition of foreign financial resources and/or goods and services.
New Zealand's foreign reserves (PDF
Published in the Reserve Bank Bulletin, December 2002.
How we balance the factors involved in foreign reserves management and the framework we use to manage the risks associated with our foreign reserves operation.
Published in the Reserve Bank Bulletin, December 1998.
Discusses the motivation for New Zealand holding a reserve of foreign currency assets.