Series Description for New Zealand's external finance
Highly liquid, marketable equity and debt securities, issued by non-resident entities. Excludes securities lent under repurchase agreements (repo). Includes securities lent under securities lending agent arrangements that are liquid and available on demand.
Short-term deposits/loans with foreign central banks, the Bank for International Settlements (BIS) and other banks, that are redeemable on demand.
The sum of the above components. For the Reserve Bank of New Zealand this includes the impact of currency swaps undertaken as part of RBNZ domestic liquidity management operations (eg if NZD is lent and USD borrowed, then USD deposits/securities are increased accordingly; if NZD is borrowed and swapped into USD, then USD deposits/securities are increased accordingly).
Total New Zealand foreign currency reserves (the sum of the above for both the Reserve Bank of New Zealand and The Treasury). Note that the Treasury reserves are a hedging instrument for an existing liability portfolio, and will diminish over time as liabilities mature. In the interim however, they are available for intervention, should the need arise.
Other assets that are readily liquid and available for use as reserve assets, but not included in other categories. Includes:
- The net, marked-to-market value of highly liquid financial derivative positions with non-residents, where such derivative products pertain to the management of reserve assets (such derivative positions denominated and settled in foreign currency).
- Short-term foreign currency loans redeemable on demand provided to non-bank non-residents.
- Reverse-repo assets. The RBNZ uses these instruments in its management of its foreign reserves and considers these fully equivalent for these purposes to all other foreign currency reserve assets.
Gold held by the Reserve Bank of New Zealand and The Treasury as a reserve asset.
The reserve tranche position. The sum of (1) SDR and foreign currency amounts that New Zealand may draw from the IMF at short notice and without condition from its ‘reserve tranche’ and (2) indebtedness of the IMF (under a loan agreement) readily available to New Zealand including New Zealand’s lending to the IMF under the General Arrangements to Borrow (GAB) and the New Arrangements to Borrow (NAB). Effectively the amount of foreign currency that a member has invested in the IMF.
SDRs are international reserve assets the IMF has created to supplement the reserves of IMF member countries. SDRs are allocated in proportion to each country's respective quota.
The sum of all components identified above.
Includes foreign currency securities issued by institutions headquartered and located in New Zealand; all other securities/deposits/financial derivative positions/loans/gold not included in official reserve assets.
The IMF is a quota-based institution. Each member of the IMF is assigned a quota, which is expressed in SDRs (Special Drawing Rights) and is equal to its subscription of capital to the IMF. The sum of members quotas thus represents the pool of assets (gold, SDRs and currencies) held by the IMF. When a country becomes a member of the IMF, an amount not exceeding 25 percent of its quota has to be paid in SDRs or usable currencies ("reserve assets") specified by the IMF and the balance in the member’s own currency, normally in the form of non-negotiable, non-interest-bearing notes (essentially promissory notes). When quotas are increased, 25 percent of each member’s increase is normally payable in SDRs, although the IMF may accept payment in other members’ currencies, or the member’s own currency. The balance of the quota increase is payable in the member’s currency.
That portion of the quota subscribed for in NZD.
That portion of the quota subscribed for using other acceptable reserve assets.
NZ currency subscription plus reserve tranche drawings outstanding.
The portion of a member’s quota paid in reserve assets (effectively the amount of foreign currency that a member has invested in the IMF). Reflects the reserve assets that a member has transferred to the IMF and is measured by the extent that the member’s quota exceeds the IMF's holdings of its currency. A member may draw up to the full amount of its reserve tranche position at any time (subject only to its representation to the IMF that it has a balance of payments need) by transferring to the IMF an equivalent amount of its own currency. Such a drawing does not constitute a use of IMF credit, as a member’s reserve position is considered part of the member's foreign reserves, and is not subject to an obligation to repay.
Borrowing by New Zealand, from the IMF, of the subscriptions paid by New Zealand in other than NZD (such borrowings are covered by a payment of NZD to the IMF, included in IMF holdings of NZ currency (above)).
The cumulative allocation of SDRs to New Zealand; representing a claim of the IMF against New Zealand.
SDRs currently held by New Zealand
NZ/SDR exchange rate. The IMF’s unit of account is the special drawing right (SDR), an international reserve asset created by the IMF and allocated to its members since 1970 in proportion to their respective quotas, whose value is calculated daily on the basis of a "valuation basket" comprising G5 currencies. The SDR valuation basket is normally reviewed every five years.
The overseas liabilities of the New Zealand private sector. Discontinued for reasons of commercial sensitivity - see Corporate sector. Source: Statistics New Zealand.
Includes the overseas liabilities of the private sector, SOEs and local government organisations. Source: Statistics New Zealand.
The official government sector includes The Treasury, the Reserve Bank of New Zealand and all government departments. Source: Statistics New Zealand.