Box B Cross currency basis swaps Kauri issuers use cross-currency basis swaps to reduce exchange rate risk by converting the New Zealand dollars
they receive at issuance into US dollars or another currency.
Any such move could be the trigger for the New Zealand dollar
to gain ground against the Singapore dollar.
On the other side of the swap market, the main sources of New Zealand dollar
funding are (i) non-resident entities who issue New Zealand dollar
denominated bonds (often referred to as Eurokiwi, Kauri and Uridashi bonds) when it is cheap relative to funding from other currencies (net of the cost of swapping the proceeds into foreign currency to meet their end-uses); (ii) the managed funds industry that holds foreign assets, but hedges some of the associated currency risk to match their New Zealand dollar
liabilities; (iii) and the Reserve Bank which obtains foreign currency liquidity by swapping New Zealand dollars
for US dollars to obtain foreign currency liquidity (discussed in the next section).
He was also fined 600 New Zealand dollars
(pounds 230) on the charge of careless driving causing injury.
Foreign investors use FX swaps to convert foreign currency to New Zealand dollars
, to finance purchases of New Zealand assets.
We have been looking toward mining the Pacific Rim and the Australian and New Zealand dollars
are two of the stronger currencies in that region," said Mark Smith, President and Chief Operating Officer of MatchbookFX.
These include liquid spot and swap foreign exchange markets for New Zealand dollars
, (5) liquid government bond markets that provides benchmarks for the pricing of swaps and New Zealand dollar
bond issues, and institutional stability (a commitment not to inflate away New Zealand dollar
debt or to influence the value of the New Zealand dollar
exchange rate, and an historical record of not defaulting on debt in times of stress).
As an asset price, the exchange rate responds to the market's current expectation of a discounted sum of returns to holding assets denominated in New Zealand dollars
relative to those denominated in other currencies.
Revenues booked in foreign currencies will benefit from lower Australian and New Zealand dollars
, but this will be offset by a significant portion of both airline's cost base being denominated in U.
For example, to exchange New Zealand dollars
for euros a trader would usually need to exchange New Zealand dollars
for US dollars and then exchange US dollars for euros.
dollars, New Zealand dollars
, deutschmarks, sterling and yen, totalling $19.
Thirdly, the Reserve Bank could intervene directly in the foreign exchange market, by buying New Zealand dollars
with some of the foreign exchange reserves which we currently hold.