Forum Archive Index - December 2000

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

 

 

Hugh,

 

You got some good points, but:

 

You were referring to the importer/exporter both handling goods contracted ahead in $US.

In theory, the importer would still pay the same $US as before (he does not loose out) and the NZ exporter would get more NZ$ than previously.

In practice, the importer likes the exporter to share some of his winnings and hence the importer may sometimes pay somewhat less $US.

 

It all depends on the relationship they have and fixed contracts.

Obviously, when a country has a lower currency, it can compete easier, but at the same time, unless you have certain safeguards(we don't have many here), you could much easier lose those companies who are exporters.

I think that a certain amount of belt tightening is in order in those conditions as long as we can increase the number of units to export!!

 

What is galling is that those countries who criticize NZ most, are also those with the most protection/tariffs measures in place! Example: US wants us to maintain our defense forces but puts new lamb quotas in place. A lower NZ$ is not helping in this case.  

 

Were you talking about Air NZ?. I read that unlike Quantas, they did not have their fuel hedged. I don't want this stock.

I have met a small number of world class NZ directors; I regret to say that the rest should be classified as 'undertakers'.    

 

Regards,

 

Gerry