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Switching currencies when travelling between Australia and New Zealand is an inconvenience that could be rescinded, according to a recent productivity commissions’ paper.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

Share

Featured Articles

Twitter timeline – how Musk pulled off a hostile takeover

Elon Musk strikes deal to buy Twitter for US$44bn following four months of cryptic tweets, secret meetings and buying of shares – here’s the timeline

Top 10 Asia restaurants, from Tokyo’s Den to Bangkok’s Sorn

From Tokyo to Bangkok, with cuisines spanning Cantonese, Thai and German, we highlight Asia’s top 10 places to eat, as per Asia’s 50 Best Restaurants

Microsoft: what Asia leaders need to know about hybrid work

Microsoft’s 2022 Work Trend Index guides Asia leaders to navigating a hybrid future – from making the office worth the commute to rebuilding social capital

Meet the company: EV Nio to list in Hong Kong, enter Europe

Leadership & Strategy

12 Tech trends to watch closely in 2022, from CB Insights

Technology

Why Deloitte Australia’s HR technology is winning awards

Human Capital