Saturday, July 30, 2011

At moments like these you need Chinese

If the US dollar does turn to custard, NZ is somewhat sheltered if the markets freeze up like they did before last election during the GFC. That may be thanks to the $NZ 5 billion swap fund set up between the NZ Reserve Bank and the People’s Bank of China earlier this year. That's a $5 billion cushion if we really need to (at least temporarily) decouple from the greenback.