Reserve Bank of New Zealand

By: EconomyWatch   Date: 9 September 2010

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The Reserve Bank of New Zealand is the central bank of New Zealand. The bank was established in 1993 on the basis of the Reserve Bank of New Zealand Act.

The bank is not a commercial bank and doesn’t offer commercial banking services. The bank is not a department owned by the government. It is a body corporate and its finances are included in the crown accounts. The bank is responsible for controlling the circulation of New Zealand’s currency and operating the monetary policy. The New Zealand government owns the bank. The main aim of the bank is to maintain the stability and efficiency of the financial system.

The Reserve Bank of New Zealand is not having any element of private ownership. According to the bank’s web site, “The Reserve Bank does not have shareholders. The bank is 100% owned by the New Zealand Government, with any extra revenue that the Reserve Bank makes going back into the Crown accounts.”

The Reserve Bank’s primary purpose, as defined by the Reserve Bank of New Zealand Act 1989 is to provide “stability in the general level of prices.” The bank is primarily responsible for self-management of monetary policy with a view to ensure price stability in the New Zealand’s economy.

By virtue of the Reserve Bank Act, the bank has the sole responsibility of issuing banknotes. The Bank is also responsible for supervising the banking system in the country to ensure its proper functioning and reliability.

Also, the Reserve Bank borrows and lends with almost no limit on volumes with a view to ensure that the interest rate in financial markets remains at the official cash rate level.

The Address and Contact details of the bank is as follows:

Reserve Bank of New Zealand

Address: G.P.O. Box 2498 Wellington 6000 NEW ZEALAND Phone No.: ++64-4-472 20 29  Fax: ++64-4-473 85 54 


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