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Top 10 Hot Cake Traded World Currencies

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New Zealand dollar (NZD)

The New Zealand dollar is the official currency of New Zealand and the tenth most traded globally, accounting for a daily average volume of US$68 billion. Like the krona, it is not a major reserve currency. It is issued by the Reserve Bank of New Zealand.

The value of NZD is strongly dependent on New Zealand’s trading relationships, the value of the country’s imports and exports, and the strength of trading partners’ currencies.

New Zealand’s key trading partners are China and Australia. Its main exports are agricultural products – particularly dairy and meat products – while its main imports are oil, machinery and cars.

The monetary policies of the Reserve Bank of New Zealand can also have an effect, particularly the interest rates offered and how these compare to those offered by other banks globally.

The currency is likely to appreciate when interest rates are relatively high compared to those on offer in other countries, and depreciate when they are relatively low.

Sources

1Bank for International Settlements (BIS), 2019
2Tax laws are subject to change and depend on individual circumstances.
3International Monetary Fund (IMF), 2018
4Central Intelligence Agency (CIA), 2018

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