The New Zealand Dollar has weakened against all of its most traded peers after China’s quarantine administration reportedly destroyed three batches of locally produced milk powder.
The action taken by the Chinese authorities has raised new fears over the quality of the small nation’s biggest export. The quality of New Zealand’s food exports has been the cause for concern before after a recent scare over the presence of a benign chemical being found in a batch of the powder last month.
Fonterra, New Zealand’s biggest milk powder producer downplayed the headlines posted in Beijing News saying that the batches destruction is simply a part of a regular quarterly review being carried out by Chinese officials. What products are removed typically comes down to labelling. Non f the products destroyed were made by Fonterra.
Milk powder from other nations such as Spain and the Netherlands were also removed.
“This is not a case of China singling New Zealand out but the headlines are having a negative impact on the kiwi,” said Khoon Goh a senior strategist in Singapore at Australia & New Zealand Banking Group Ltd. “This is temporary and once some clarity around this news story emerges, I expect kiwi to regain those losses.”
The currency’s losses are expected to be limited after an official for milk powder producer Vimila’s China joint venture said that the reports refer to the destruction of imported milk powder because of poor labelling and that the milk powder itself wasn’t the problem.
Current New Zealand Dollar Exchange Rates
The New Zealand Dollar to Euro exchange rate is currently trading at 0.6329
The New Zealand Dollar to Pound Sterling exchange rate is currently trading at 0.5457
The New Zealand Dollar to US Dollar exchange rate is currently trading at 0.8452
The New Zealand Dollar to Australian Dollar exchange rate is currently trading at 0.8177
The New Zealand Dollar to Canadian Dollar exchange rate is currently trading at 0.8555
The New Zealand Dollar to Emirati Dirham exchange rate is currently trading at 3.1041
The New Zealand Dollar to Swiss Franc is currently trading at 0.7806
The New Zealand Dollar to Japanese Yen exchange rate is currently trading at 79.0532
These exchange rates were correct as of 09:50 am
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