New Zealand: Staff Report for the 2008 Article IV Consultation—Informational Annex

New Zealand has experienced a decade-long robust economic expansion, owing to its sound macroeconomic policies and structural reforms, but resource constraints have emerged. Executive Directors welcomed the policy settings, supported by the anticipated evolution of external and global developments. They noted that fiscal policy and tightened stance of monetary policy are appropriate. Directors noted that the financial sector remains sound. They also welcomed the steps taken by the Reserve Bank of New Zealand (RBNZ) to review its liquidity policy for banks to encourage the diversification of funding sources.

Abstract

New Zealand has experienced a decade-long robust economic expansion, owing to its sound macroeconomic policies and structural reforms, but resource constraints have emerged. Executive Directors welcomed the policy settings, supported by the anticipated evolution of external and global developments. They noted that fiscal policy and tightened stance of monetary policy are appropriate. Directors noted that the financial sector remains sound. They also welcomed the steps taken by the Reserve Bank of New Zealand (RBNZ) to review its liquidity policy for banks to encourage the diversification of funding sources.

Annex I. New Zealand: Fund Relations

(As of March 31, 2008)

I. Membership Status: Joined: August 31, 1961; Article VIII

II. General Resources Account:

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III. SDR Department:

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IV. Outstanding Purchases and Loans: None

V. Financial Arrangements: None

VI. Projected Obligations to Fund: None

VII. Exchange Arrangement:

New Zealand accepted the obligations of Article VIII on August 5, 1982. The New Zealand dollar has floated independently since March 1985. New Zealand maintains an exchange system that is free of restrictions on the making of payments and transfers for current international transactions, other than restrictions notified to the Fund in accordance with Decision No. 144-(52/51).

VIII. Article IV Consultation:

New Zealand is on the 12-month consultation cycle. The 2007 Article IV consultation discussions were held during February 12–21, 2007, the Executive Board discussed the staff report (IMF Country Report No. 07/150) and concluded the consultation on April 27, 2007.

IX. FSAP Participation and ROSCs:

FSAP mission took place during October 30–November 18, 2003. The FSSA and the Detailed Assessments of Observance of IOSCO Objectives and Principles of Securities Regulation and FATF Recommendations for Anti-Money Laundering and Combating the Financing of Terrorism were published under Country Reports No. 04/126, No. 04/417, and No. 05/284, respectively.

X. Technical Assistance: None

XI. Resident Representative/Advisor: None

Annex II. New Zealand: Statistical Issues

New Zealand publishes a wide array of high quality economic and financial data, which are fully adequate for surveillance purposes. The authorities are continuing to enhance data quality and expand the range of data products available, including a project led by the New Zealand Treasury to publish fiscal data consistent with the Government Finance Statistics Manual 2001 (GFSM 2001). The Reserve Bank of New Zealand has indicated that it is not at present in a position to submit the standardized report forms for monetary statistics introduced in October 2004. New Zealand has made progress toward becoming a subscriber to the Special Data Dissemination Standard (SDDS). The main remaining issues are the requirement for publication of an industrial production index, and the timeliness of local government data.

Table of Common Indicators Required for Surveillance

(As of April 17, 2008)

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Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.

Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.

Foreign, domestic bank, and domestic non-bank financing.

The general government consists of the central government (including budgetary, extra budgetary, and social security funds) and state and local governments.

Including currency and maturity composition.

Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I); Not Available (NA).

New Zealand: 2008 Article IV Consultation: Staff Report; and Public Information Notice on the Executive Board Discussion
Author: International Monetary Fund