Reserve Bank of New Zealand Bulletin articles
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March 2005 (Vol 68, no 1)
March 2005 (Vol 68, no 1)
Download the complete issue of the March 2005 Bulletin (PDF 735KB)
Articles
Editor's Note (PDF 34KB)
Foreign reserves for crisis management (PDF 129KB)
By Michael Gordon
This is the first of two articles detailing the Reserve Bank's recent review of its foreign exchange market intervention capabilities. This article deals with the review of the adequacy of foreign reserves that could be used to calm a disorderly foreign exchange market during times of stress. The Bank developed a framework for balancing the costs and benefits of holding reserves, and recommended an increase in the Bank's intervention capacity to around $7 billion.
The Reserve Bank's new foreign exchange intervention policy (PDF 141KB)
By Kelly Eckhold and Chris Hunt
Last year the Reserve Bank concluded a review of its foreign exchange intervention policy. The review resulted in a recommendation to the Government that the Bank be given the capacity to broaden the objectives of foreign exchange intervention towards helping the Governor achieve monetary policy objectives as dictated by the Policy Targets Agreement (PTA). This article describes our new intervention role and the implications for the management of the Bank's foreign reserves.
An overview of the manufacturing sector (PDF 262KB)
By Jane Turner
This article examines recent trends in New Zealand's manufacturing sector. It finds that sales to the domestic market have been reasonably robust in recent years, reflecting the strong local economy. However, the share of imports in local sales has been rising, partly due to structural factors and partly due to the rising exchange rate. Manufactured export activity has fluctuated in recent years, with key influences including the exchange rate, commodity prices, and cycles in trading partner economies. After some weakness in 2002 and 2003, export sales strengthened in 2004, helped by the global economic cycle. The article finds that profitability (the earnings to sales ratio) has fallen for many industries over this period, which is likely to reflect a rising exchange rate and ongoing competitive pressures.
Amendments to bank disclosure requirements (PDF 44KB)
By Ken Matthews
Banks are required to issue quarterly disclosure statements covering a wide range of financial and prudential data. The rules under which registered banks are required to make these disclosures are set out in Orders in Council. These Orders in Council have recently been republished with a number of amendments, relating to the disclosure of information about insurance business, rating-contingent limits on exposures to connected persons, credit rating information in respect of large credit exposures, and additional New Zealand balance sheet information by banks that are branches of overseas banks. There are also some miscellaneous amendments to improve the effectiveness of existing disclosure requirements. This article describes the amendments and the reasons for them.
New Zealand economic and financial chronology 2004 (PDF 47KB)
By Madeline Penny
This chronology documents key economic and financial events that occurred during 2004. A longer chronology,
covering the period from 1993 to 2004, will shortly be published on the Bank's website.
Speeches
New Zealand's potential growth rate (PDF 212KB)
An address by Alan Bollard, Governor of the Reserve Bank of New Zealand to the New Zealand Canterbury Chamber of Employers' conference in Christchurch.
Alternatively, link to the html version of this speech by Alan Bollard.
The views expressed are those of individual authors and do not necessarily reflect official positions of the Reserve Bank of New Zealand. Articles published in this Bulletin may not be wholly or substantially reproduced without the permission of the Reserve Bank of New Zealand. Data, brief extracts from articles, and other material appearing in the Bulletin, may be used without restriction provided due acknowledgement is made of the source.
(c) Reserve Bank of New Zealand
