Could some people please enlighten me on money matters? My naïve hope is that there are forumites with both an understanding of national economy/finance and an ability to word things in such a way that a person with an average IQ can understand.
I keep reading about “the Kiwi dollar’s strength” and that it has consequences for NZ exporters, i.e. the national economy. That’s the macro view.
I keep reading about the Kiwi dollar’s strength against the Greenback, the USD being the lead currency in international banking and trade.
People in UK/NZ forums keep worrying about the exchange rate of the NZD vs. GBP, another currency not tied to the Euro.
And I keep understanding nothing, to be honest.
Strengths and weaknesses of a currency depend on your point of view, the currency you compare it with, and which direction you want to exchange your money. That’s the micro view.
So what does it mean for someone having Euros and wanting/needing to exchange them to NZ dollars at some point?
Could somebody please explain to me what the current exchange rate of the NZD against the EUR means, especially viewed in perspective? At 1 NZD = 0.57 EUR or 1 EUR = 1.72 NZD the exchange rate is rather “bad” now from my point of view, especially if I compare it to the heydays of 2006/2007 when one Euro was about two dollars, i.e. “good” for me. (For me good and bad is more useful terminology than strong and weak).
I am aware of the current limbo of the Euro currency, i.e. the discussions whether the Euro zone is going to survive at all and that either way it might have major consequences on the value/exchange rate of the Euro. Of course it’s crystal-ball gazing, but somebody more advanced than Economics 101 and/or working in finance or banking might have a qualified opinion they would be willing to share.
To put it more simply: if you had Euros and were planning to live in NZ, would you hold on to them or transfer them and exchange them to NZ dollars now before whatever disaster happens to the Euro in the near future?