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.
These papers have been prepared to brief the incoming Minister of Finance on the role and functions of the Reserve Bank of New Zealand. The papers are also intended to be a useful briefing for other interested parties.
The current statutory framework for managing New Zealand’s foreign reserves is sections 16-24 of the Reserve Bank of New Zealand Act (the ‘RBNZ Act’). This statutory framework is under review as part of the wider RBNZ Act Review (‘the Review’).