Welcome to Pure FX's latest update of the pound to New Zealand dollar interbank exchange rate!
Sterling rises versus the kiwi! The pound to New Zealand dollar interbank exchange rate has hit 1.8971 today, its highest since January 2nd, or close to 1 week.
If you're a Brit thinking of emigrating to New Zealand, perhaps to buy a property in Wellington or Auckland, this may be helpful information for your money transfer!
New Zealand Dollar Falls, as China at Risk of Credit Crunch
The pound to New Zealand dollar interbank exchange rate has neared this 1-week high, because China is at risk of a credit crunch.
For instance, according to data published by Wind Information information recently, a record 119 Chinese corporations defaulted in 2018, triple the previous year.
What's more, China's corporate debt-to-GDP ratio jumped has jumped to 160% from 95% since 2008. This suggests that China's corporations may be struggling to pay back their loans.
In turn, this has weakened the New Zealand dollar, as China is New Zealand's 2nd-largest trade partner!
NZ Dollar Weakens, as New Zealand at Risk of Slowdown
What's more, sterling has also risen versus the New Zealand dollar, because there's talk that New Zealand's economy may soon decelerate.
For example, speaking recently, well-known kiwi economist Cameron Bagrie said that "The global economy and the New Zealand economy does tend to run in a 10-year cycle".
Moreover, Mr. Bagrie added that New Zealand's economy faces a "dangerous cocktail" of trade wars between the USA and China.
As a result, New Zealand's GDP growth may slow in 2019, thereby cutting the value of the NZ dollar, as investors place funds elsewhere!
Pound Strengthens, as Brexit Deal Looks Likely
Furthermore, the pound to New Zealand interbank exchange rate has also risen, because it's thought that the UK and EU will soon agree the Brexit deal.
This week, the UK's MPs return to Parliament, to vote on prime minister Theresa May's proposed Brexit deal.
It's likely that MPs will vote down the deal on the 1st attempt, though as the pressure on MPs rises to avoid a 'No Deal', MPs will accept the deal on a 2nd or 3rd vote.
If so, a Brexit deal will give greater certainty to UK businesses to hire new staff and invest in equipment, thereby bolstering the value of sterling!
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Please bear in mind, this article is Pure FX’s opinion only and does not constitute advice. Moreover, the exchange rates referred to in this article are the interbank rates, which are the rates at which banks and financial institutions buy and sell currency to each other. Therefore these exchange rates cannot be accessed by individuals or SMEs, and are not the same rates that Pure FX can offer. To get a free exchange rate quote, call us on +44 (0) 1494 671800, or email [email protected]