New Zealand Dollar Introduction

The New Zealand dollar is the currency of New Zealand, also known as the NZD or Kiwi, because the one-dollar coin of the New Zealand dollar is printed with New Zealand's national bird, the Kiwi. The New Zealand dollar is one of the top ten most traded currencies in the world, and its exchange rate is affected by commodity markets, especially New Zealand's main exports such as dairy products, wool and timber.

New Zealand Dollar Exchange Rate

The New Zealand dollar's exchange rate system is flexible, that is, the price of the New Zealand dollar is determined by market supply and demand, rather than being fixed by the government or central bank. This system is conducive to the free convertibility between the New Zealand dollar and other currencies, and also makes the New Zealand dollar exchange rate more reflective of the actual situation of the New Zealand economy. However, this also means that the exchange rate of the New Zealand dollar will be affected by fluctuations and speculation in international financial markets, and may sometimes experience excessive appreciation or depreciation.

The currency most commonly used to exchange New Zealand dollars is the US dollar, which is the currency pair New Zealand dollar against the US dollar (NZD/USD). According to the exchange rate reported by the Bank of Taiwan, on June 13, 2023, the cash selling price of the New Zealand dollar against the US dollar was 19.29 yuan, and the spot selling price was 18.97 yuan. These exchange rates are for reference only and actual transaction rates may vary.

Factors Affecting the New Zealand dollar Exchange Rate

The exchange rate trend of the New Zealand dollar is affected by many factors, such as interest rate differences between New Zealand and the United States, changes in commodity prices, global risk appetite, trade relations and political situations. In 2022 and 2023, the New Zealand dollar may show a volatile upward trend against the US dollar. The main reason is that the New Zealand Central Bank is expected to raise interest rates to curb inflationary pressure, while the US Central Bank may delay tightening monetary policy. In addition, New Zealand has better control over the epidemic and has a faster economic recovery, which will help increase the attractiveness of the New Zealand dollar.

However, the New Zealand dollar also faces some downside risks against the US dollar. For example, the New Zealand central bank may suspend its interest rate hike plan in response to market turmoil, or the U.S. central bank may start reducing the scale of asset purchases early. In addition, if new coronavirus variants or other black swan events emerge globally, it may suppress commodity markets and risk appetite, causing the New Zealand dollar to fall against the US dollar.

Therefore, before investing in New Zealand dollars, you need to carefully analyze various influencing factors and formulate a suitable strategy based on your own risk tolerance and investment goals. There are many ways to invest in New Zealand dollars, such as direct exchange for cash, buying and selling foreign exchange contracts, purchasing New Zealand dollar-related stocks or funds, etc. Each method has its advantages and disadvantages, and you need to choose according to your own amount of funds, time period and operating habits.