New Zealand Fin Min Bill English warned today that intervening in the New Zealand dollar would be like going “out in a war zone with a pea-shooter”.
“Some countries are, like Switzerland, building up a huge position on their exchange rate and their taxpayers will take a bath if it goes wrong,” English said. “We are just not prepared to take that kind of risk. We are a small country.”
English also warned that developed countries using unorthodox policies will face difficulties as they attempt to exit.
NZD is among the strongest currencies so far this year and just four cents from the all-time high from mid-2011. This is something to remember if it nears or breaks the record.