Forum Archive Index - December 2000

["G Stolwyk" <stolwyk@wave.co.nz>]

 

 

Hi Jeremy,

 

 

I agree with you: It is relatively easy to make a statement that a low dollar is good for us.

 

The question is: Is the dollar too low?

 

In NZ's case the problem often is 'A moving target', where large takeovers require foreigners to buy NZ dollars in a small market;

the dollar moves up for a day or so and then moves down again.

 

As far as Affco is concerned, because they trade in goods obtained from and sold to the world at large, they will be buying and selling in a range of currencies:There will be compensating currencies.

 

However, it is fair to say that farmers will benefit as long as they don't need too many expensive inputs.

 

It would also help if a country has little foreign debt. Repayments in downgraded NZ dollars can be quite nasty, I would think.

 

Gerry