Key graphs - real exchange rate
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Over the long haul, the New Zealand's nominal exchange rate
(trade-weighted index - the blue line) has tracked reasonably closely
to New Zealand inflation relative to the inflation experienced in the domestic economies of our
major trading partners (the red line) - as inflation has increased
relative to that of New Zealand's main trading partners,
the nominal exchange rate has depreciated.
In terms of the divergence from a long-run average
(the black horizontal line = 100), the real exchange rate (the green line),
which is the blue line divided by world prices/NZ prices
(the red line inverted), has for most of the last thirty years
cycled within a range of ten percent either side of the long run average.
Chart data may be downloaded by selecting the download data link.
Last updated 5 November 2009 |
