Reserve Bank confirms forex intervention

Release date
11 June 2007

The Reserve Bank confirmed it has intervened today in the foreign exchange market to sell New Zealand dollars.

Reserve Bank Governor Alan Bollard said: "As stated in our June Monetary Policy Statement, we regard current levels of the exchange rate as exceptional and unjustified in terms of the economic fundamentals. 

"This action does not prejudge the future direction of monetary policy, which as always will remain dependent on emerging economic trends.

"The action is consistent with clause 4(b) of the Policy Targets Agreement, which requires monetary policy to avoid unnecessary instability in the exchange rate."

For further information contact:
Mike Hannah
Head of Communications
Ph 04 4713671, 021 497418, mike.hannah@rbnz.govt.nz