Search

Client support: Phone: +357 (22) 008796

Central Banks

News of the Reserve Bank of New Zealand (RBNZ)

Market Focus

All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.

Reserve Bank of New Zealand (RBNZ)

www.rbnz.govt.nz

Reserve bank of New Zealand (RBNZ) is the central bank of New Zealand and is responsible for maintaining financial system stability of the country. 

The bank was founded in 1939 and has a substantial difference from other central banks; the financial institution entirely belongs to the government and is centralized. This fact provides the bank with great power in terms of the country’s monetary policy regulation.

The Reserve Bank main functions

The bank carries out a wide range of tasks, from operating monetary policy to monitoring and supervising the health of the financial system, maintaining foreign reserves, operating in the financial markets if necessary, and issuing currency as required.

Monetary policy

The Reserve Bank uses monetary policy to maintain price stability and prevent sharp economic changes as well as changes of interest rates and currency rates. The Bank implements monetary policy by setting the Official Cash Rate (OCR), which is reviewed eight times a year at regular intervals as well as at unintended meetings in emergency situations. The New Zealand Reserve Bank’s decision is to keep the OCR for crediting commercial banks at 2.5 percent.

Supervision over the financial system and financial markets activities

The Reserve bank controls the New Zealand banking system.

The reserve bank regulates banks, insurance companies and non-bank credit-depository institutions (including the financial companies that accept deposits from public, building societies and credit unions), in order to support stability and efficiency of the financial system. The bank is also charged with the task with fulfillment of obligations to deter money laundering and terrorist financing (known as the struggle against money laundering or AML).

The reserve bank demands quarterly accounts of profits from all banks in the country, thus controlling the currency rate along with reporting important information concerning commercial banks financial conditions and activities. 

Banknotes issue

The bank started issuing banknotes in 1934.  In 1985 the New Zealand dollar obtained the status of free currency, and since then began the free float on the international exchange market. The RBNZ liabilities to NZD are practically the same as to other central banks when speaking about the unitary right of issuing currency. Besides, the bank follows up the events and news that may influence currency pairs that include NZD, considering its strong and weak sides and potential impact on the economy of New Zealand.

Organization structure

The Reserve Bank’s senior management team is made up of the Governor, a Deputy Governor, a Head of Operations, and the heads of the Bank’s various departments. The distinguished feature of the SBNZ that differs it from other central banks is that the monetary policy final decisions belong to the Governor of the central bank. 

The Reserve Bank has a Board of Directors whose primary function is to review the performance of the Governor and the Bank. The Board holds regular meetings at which it receives extensive briefings on the Bank’s activities, decisions and policies. At these meetings the Board also provides advice to the Governor. Each year the Board writes an assessment of the Bank and the Governor’s performance, which provides advice to the Minister of Finance and made public later in the Bank’s Annual Report.

Other

RBNZ meetings schedule for 2020
  • February 12 (with monetary policy statement) 
  • March 25
  • May 13 (with monetary policy statement) 
  • June 24
  • Аugust 12 (with monetary policy statement) 
  • September 23
  • November 11 (with monetary policy statement)

All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.

To maximize our visitors browsing experience TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies. If you disagree, you may change your browser settings at any time. Read more

  • To maximize our visitors browsing experience TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies. If you disagree, you may change your browser settings at any time. Read more

    © 2011-2020 TeleTrade DJ Limited

  • Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work both to your advantage and disadvantage. There is a possibility that you may lose all of your initial investments, so you should not risk more than you are prepared to lose.

  • Prior to trading you should make sure you fully understand all the risks involved and take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but if the risks seem still unclear to you, please seek independent advice.

  • The information presented on this website should not be perceived as a basis for investment decision making and is intended solely for informational purposes.

Connect with Us
Share on
social networks
Online
consultant
Request a callback
Top Page