Reserve Bank of New Zealand New Zealand dollar (NZD) Exchange Rate Deals

Reserve Bank Of New Zealand

The Reserve Bank Of New Zealand (RBNZ) is the central bank of New Zealand. The role of central banks is to preserve the value of money by keeping inflation low and stable. They do this by controlling the interest rate at which banks can borrow.

Interest rates, inflation, and exchange rates are all intrinsically linked. When the RBNZ manipulates interest rates this impacts both the inflation in New Zealand and also the relative value of the NZ dollar compared to other currencies.

Read our guide to the Relationship between Interest Rates and Currencies.