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New Zealand dollar is going mad.

Published July 23rd, 2007 in business

For my friends overseas, in case you have not found out yet, the NZ dollar is up to 0.80 USD! That’s a 20% increase compared to March ‘07. Meesto has some interesting thoughts about how this relates to Kiwisaver, and has some suggestions about what we can do. A lot of people are very nervous though. The thoughts are that everything is going to come crashing down some time soon.

Perhaps it’s not true, but many exporters are suffering. I blame people with too much money in the States coming over here and buying up our currency. Apparently the Thai bhat is doing something similar too.

I have no economic education so take it with a grain of salt.

5 Comments to “New Zealand dollar is going mad.”  

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  1. 1 Zeren Jul 24th, 2007 at 10:39 am

    20% is HUGE I guess, comparing where I live, where currency steadily go down bit by bit. I’m not an economics person either, just my parents are.

  2. 2 skarnz Jul 24th, 2007 at 12:15 pm

    hmm. Tis interesting indeed.

    Yet more excuse for me to delay paying off that bit of student loan I have left :P

    Still, it does seem that things are unusually strong atm…

    /shrug

  3. 3 Joel Jul 24th, 2007 at 6:46 pm

    @Zeren: 20% is huge since it translates to 48% annually, and our dollar was already pretty high.

    @Skarnz: There goes my plans to get paid lots of USD and pay off my student loan in a couple of years. Hehe, maybe I should stay in NZ to pay off my student loan while the dollar is strong then :)

  4. 4 Ben Jul 31st, 2007 at 6:05 pm

    It’s happened in Aus as well. The Aus $ is now worth like 85c US which is craziness.

  5. 5 Joel Jul 31st, 2007 at 8:54 pm

    From the number of people I’ve met escaping the US I get the feeling the country is a large, slowly crashing, Zeppelin with the helium being let out.

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