The Reserve Bank's new foreign exchange intervention policy

Kelly Eckhold and Chris Hunt
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Chris Hunt: Reserve Bank of New Zealand

Reserve Bank of New Zealand Bulletin, 2005, vol. 68, No 1

Abstract: Last year the Reserve Bank concluded a review of its foreign exchange intervention policy. The review resulted in a recommendation to the Government that the Bank be given the capacity to broaden the objectives of foreign exchange intervention towards helping the Governor achieve monetary policy objectives as dictated by the Policy Targets Agreement (PTA). This article describes our new intervention role and the implications for the management of the Bank's foreign reserves.

Date: 2005
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