In just a few days last week, the Kiwi dollar fell from a high of US$ 0.82, down to 0.68, before rebounding to US$0.72, where it seems to be settled again, at least in the short term.
If you're thinking of touring New Zealand next year that's good news - your upcoming vacation just became 15-18% cheaper, depending upon your currency. For us Kiwis heading overseas for our vacations, things just became quite a bit pricier. :-(
The economic gurus have been telling us for sometime that the Kiwi Dollar is vastly overvalued, and needs to, and will definitely fall. Because of the attractive rates of interest available in New Zealand, a result of the way the NZ Government manages our inflation, overseas investors buy Kiwi Dollars, driving the value of the NZD up against other currencies. The rapid correction in the value of our currency will make NZ exporters and those of us in the tourism industry a bit happier.
Predicting the exchange rates is an imperfect science though, and no-one seems game to say whether they expect the Kiwi dollar to rise back up or fall further. The bottom line is, right now, make hay while the sun shines.. :-)
If you're already booked to tour with us this upcoming season, or have been delaying your decision, now's a great time to take advantage of the fall by perhaps paying for your tour in full while the Kiwi dollar is down.
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