Try to imagine what would have happened without the single currency. Probably, foreign exchange markets may have been subject to speculative attacks. Currency fluctuations may have aggravated both the financial crisis and real economic tensions – and do not forget the political turbulence implied by such currency tensions. The financial crisis confronts policymakers with a situation of uncertainty in a very profound sense.
In banking, while the home and host authorities have some complementary interests, they also have areas of potentially diverging and conflicting interests, as well as jurisdictional limits. The Reserve Bank of New Zealand is committed to doing all it can to maintain a sound and efficient financial system in New Zealand.