Thursday 7th Sep 2000
Media Release -- Economy
This afternoon the New Zealand dollar fell to its lowest level ever, said ACT Leader, Hon Richard Prebble.
Today’s trading on the Foreign Exchange markets saw the dollar fall to below US41.88c.
“The dollar has fallen further than any other currency in the world except the Zimbabwean dollar and the Ecuadoran
“The level of the Kiwi is near crisis level. This means a further wave of price increases, lead by increased petrol
prices is inevitable.
“On a trade weighed basis the Kiwi is now at an historic low. The New Zealand dollar is at its lowest ever level against
the Yen which means all Japanese goods must increase in price.”
ACT has been told by the financial market that foreign investors are not investing in New Zealand. This is compounded by
the fact that thousands of New Zealanders continue to take their money off shore.
“The country is paying a very high price for anti-business laws like the Employment Relations Act. It appears just a
question of time before the Reserve Bank is forced to hike up interest rates to protect the Kiwi dollar from a total
“Statements like ‘we won, you lost, eat it’, from the Finance Minister do enormous damage to the economy. Michael Cullen
should step aside and allow Phil Goff the opportunity to re-establish business’ confidence in this coalition
government,” said Hon Richard Prebble.
For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at