Reserve Bank balance sheet
| F1 Reserve Bank of New Zealand liabilities | | F2 Reserve Bank of New Zealand Assets | | F5 Reserve Bank of New Zealand; Foreign Currency assets, liabilities and currency flows | | Changes in Liquidity Management |
F1 Reserve Bank of New Zealand liabilities
Change in valuation assumptions
4 October 2006
On 30 June 2006, a change was made to the assumptions used to value foreign currency term loans for accounting purposes. The change resulted in an increase in the reported value of foreign currency liabilities of $73.4 million in June.
For a full description of the changes, refer to the 28th page of the downloadable pdf entitled "2006 Annual Report The Year in Review (PDF 1.6MB)" (actual page 49) of the Annual report for 2006.
F2 Reserve Bank of New Zealand Assets
Change in accounting methodology for F2 Bulletin Table
12 May 2006
Prior to August 2004 the investment by the Bank in the Bank for International Settlements was classified within Marketable Securities. From August 2004 this investment has been classified as a Foreign Asset.
Prior to August 2004 FX Swaps were classified within Current Account Advances. From August 2004 these swaps have been included in Marketable Securities.
F5 Reserve Bank of New Zealand; Foreign Currency assets, liabilities and currency flows
Publication of Table F5
6 July 2007
Readers should note that Table F5, Foreign currency assets and liabilities and currency flows, is updated in the last week of every month, except for the end of the financial year. Due to the normal year-end accounting requirements, Table F5 will be updated with June data on 6 August.
Change in valuation assumptions
4 October 2006
On 30 June 2006, a change was made to the assumptions used to value foreign currency term loans for accounting purposes. The change resulted in an increase in the reported value of foreign currency liabilities of $73.4 million in June and a reduction in the reported net open foreign currency position of the same amount.
For a full description of the changes, refer to the 28th page of the downloadable pdf entitled "2006 Annual Report The Year in Review (PDF 1.6MB)" (actual page 49) of the Annual report for 2006.
Items previously categorised as 'other' are now included in the net open foreign currency position.
Changes in Liquidity Management
28 July 2006
Some Reserve Bank balance sheet, foreign currency asset and liquidity management data series disseminated monthly have recently begun to reflect changes made this year to the Bank’s liquidity management policy.
As explained in the document “Reform of the Reserve Bank of New Zealand’s Liquidity Management Operations” a new approach to liquidity management policy is now being phased in by the Bank. Increasing liquidity needs of the banking system at a time when availability of government securities was declining, have prompted the Bank to move away from a system relying on bank holdings of government debt as the basis for generating the cash needed to facilitate interbank settlement of payments.
In February 2006 the Bank increased the level of settlement cash in the system to $2 billion to meet immediate needs. From July 2006 the level of settlement cash will be increased further over time to a likely range of $5 - $7 billion. This new liquidity management policy manifests in the Bank’s balance sheet and foreign currency reserves, with larger domestic liabilities matched by larger foreign exchange assets. At present the Bank is holding foreign currency assets as the counterpart to the increased settlement cash made available to the domestic banks The foreign exchange risk on the foreign currency assets is hedged, using off-balance sheet transactions (foreign exchange swaps).
