Reserve Bank of New Zealand Bulletin, Mar 2005

- Central Banking staff
- 01 Apr 2005

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The Reserve Bank of New Zealand has published the March 2005 issue of its Bulletin. The first article discusses the issues around foreign exchange market dysfunction and the rationale for holding reserves. It sets out the framework that the Bank used to review the optimal level of reserves.

Based on that framework, the Bank recommended that its intervention capacity for crisis management be increased to a minimum of $7 billion. This recommendation was accepted by the Minister of Finance in

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