New Zealand opposition parties lost a 61-60 vote in Parliament today on a bill that would have increased the RBNZ’s price stability mandate to include “maintaining an exchange rate that is conducive to real export growth and job creation.”
The bill was based on the proposition that the Reserve Bank mechanism for changing interest rates could be used to lower or raise the exchange rate.
Silly New Zealander politicians — trying to manipulate their currency out in the open when everyone else is doing it covertly.
On a more serious note, the Fed, SNB, PBOC and BOJ have swung the doors wide open for FX tomfoolery. It’s only a matter of time before the rest of the world follows.
