MNI BRIEF: RBNZ To Boost Foreign Reserves
The Reserve Bank of New Zealand will increase its foreign reserves to be able to support the NZ dollar after striking an agreement with the Minister of Finance, the central bank said Wednesday.
The reserves, which have remained largely unchanged since 2007, will be increased by an unspecified amount and will occur gradually over time to minimise any financial market impact. "Due to market and policy sensitivities, we do not intend to make public any further details on the size or composition of this increase. However, our foreign reserves holdings will continue to be published on our website on a monthly basis," the RBNZ said.
The RBNZ had total foreign currency assets of NZD17.3 billion and foreign currency intervention capacity of NZD12.2 billion.