How does the NZ dollar get more valuable?



Answer:
If they export more than they import the dollar should get stronger, however the government has to not spend more than they take in also.

The simplest way would be to buy Gold in large amounts and add it into their Central banks asset base.

http://dsbb.imf.org/applications/web/res...

Sorry, New Zealand wasn't listed but here is Australia:

http://www.rba.gov.au/statistics/statist...
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I found N. Z. but you still have to hunt for the data:

http://www.stats.govt.nz/default.htm...
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The Kiwi is notoriously known for the higher interest. One of their main customers has been Japan. Ultimately it falls on trade but not just with goods and services.

Currency is generally only good in their home country. This limits use and supply. Think of casino chips. They have value, but only at that one casino. If you go to the grocery store, they probably will not take them. However, it does not cost the casino anything more to have them out. Hypothetically speaking, the supply of chips would shrink and demand would rise for the chips.

If say Japan were to sell goods to NZ, the citizens of NZ would purchase this in Kiwis not Yen. The high interest would keep the Kiwis in NZ. Thus shrinking the supply. - Hypothetically speaking.

This is just another view and not the only view. Bottom line, it is all about supply and demand, but just more technical.

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