Why the NZ Dollar Could Have a Very Bright Future
In a world that certainly faces an uncertain economic future, it should be very reassuring for New Zealanders to discover that their currency, at least, is set to see increased usage over the coming years. This was a finding in a wide-ranging report on global currency trends, prepared by the banking and business intelligence company, SWIFT.
Looking forward to 2023, the report predicted that only three regions are set to increase their share of world trade in the next few years: Asia, Australia, and New Zealand. This will inevitably have a knock-on effect which will see the New Zealand dollar being more commonly used as a trading currency, greatly increasing its strength and relevance on the world stage.
Good news for businesses
This will be very good news, not just for the country itself but also for businesses and industries that accept New Zealand dollars. As well as the traditional ones revolving around agriculture and tourism, another sector that will be set to both benefit from, and encourage the growth of, the country’s currency is online gambling.
Players will find the best online casinos using NZ dollars also offer their welcome bonuses in the currency, as well as providing a variety of ways to deposit and withdraw their dollars too. In the 18 months leading up to 2020, an estimated NZ$381 million was spent in online casinos and, with this figure set to grow further, the sector’s significance is clear to see.
Naturally, world trade is going to be another important driving force behind the increasing strength of the NZ dollar, and this could be seriously affected by events on the other side of the world.
The Brexit Effect
This is because December 31st, 2020 sees the end of the Brexit transition period in the UK. After this date, existing trade links between Britain and the EU will be severed and, as of the end of August, it seems increasingly likely that no alternative deal will be reached.
To mitigate the potential effects of this, the UK is keen to strike as many trade deals as possible with countries all over the world. To help facilitate this, the UK government has even taken on the former Australian prime minister as an advisor to the Board of Trade, and he will be sure to promote deals with both Australia and New Zealand.
This could provide some much-needed impetus to get an agreement moving as New Zealand has expressed a certain level of frustration at the slow rate of progress to date. The country is keen to advance as quickly as possible, ideally to establish a free trade deal. With trade between the two countries already worth around NZ$5.7 billion a year, a new could increase this greatly.
The underlying strength of the New Zealand economy obviously also has a key role to play in the future of the currency. So, the signs are all good that, before long, the NZ dollar will be taking its place alongside many of the world’s other leading currencies.
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