Kiwi and Aussie Dollars May Merge

By Bizclik Editor

Switching currencies when travelling between Australia and New Zealand is an inconvenience that could be rescinded, according to a recent productivity commissions’ paper.

The UK Telegraph reported today on the two nations’ commissions discussion about combining their currencies to reduce business costs, given that Australia is New Zealand’s largest trading partner. In retrospect, the Kiwi nation ranks fifth in terms of Australia’s top trading nations.

According to the International Business Times, the New Zealand dollar has reached a six-month high against the Australian dollar due to Australia’s $480 million trade deficit.

Click here to read the latest issue of Business Review Australia

“On the one hand, there are potential benefits in avoiding the transaction costs associated with having separate currencies," according to the commissions' paper.

However, the paper also states that the Euro as a single currency has not provided a positive argument in favour of combining ANZ’s monies.

"Where business cycles and economic changes affect the two countries differently, there could be costs in not having independent exchange rates,” the paper said. “The recent experience of countries in the eurozone is instructive in this respect."

Australian Prime Minister Julia Gillard is reportedly not in favour of a single ANZ currency.


Featured Articles

Welcome to the New Age of the CISO

HE Dr Mohamed Al-Kuwaiti, Head of Cyber Security, UAE Government and Dr Aloysius Cheang, Chief Security Officer Huawei UAE, on the new age of the CISO

Making the UAE the world’s strongest digital fortress

His Excellency Dr Mohamed Al-Kuwaiti, Head of Cyber Security, UAE Government, on visionary plans to build the world’s most secure digital society

World Mental Health Day – 10 apps to improve wellbeing

Employers should recognise the growing use of apps to help support mental health – here are 10 to consider on World Mental Health Day

Exec interview: Brook Sims, COO, MAC Diversity Recruiters

Leadership & Strategy

Best new books that will make you a better leader

Leadership & Strategy

5 Mins With: Jeff Li, founder and CEO of Shoplazza

Leadership & Strategy