Support for a common Anzac currency gathered pace yesterday, with HSBC's chief economist and an Asian Wall Street Journal editorial both throwing their weight behind the prospective union.
Backing came as the Australian dollar tested new lows and the kiwi slipped against the US dollar.
At an Importers Institute conference in Auckland, HSBC's Australian-based chief economist, John Edwards, said adopting the Aussie dollar was the only real solution to New Zealand's economic woes.
A cheap kiwi dollar was here to stay, he said, and two immediately positive effects would be felt if New Zealand adopted the Aussie dollar.
New Zealand would immediately transfer its existing dollar obligations into Australian dollars, giving access to the bigger Australian foreign exchange market.
The Asian Wall Street Journal's editorial also backed a common currency, saying an Anzac dollar made a lot of economic sense for New Zealand.
But if the case for a common currency between the two was strong, the case for using the US dollar was even stronger, the journal said.
Its comments came after Prime Minister Helen Clark revived the currency debate during a visit to New York last week by suggesting that formal work on the proposal might begin sooner than expected.
However, she said this week that currency union would not be on the formal agenda when she next meets Australian Prime Minister John Howard.
Australian Treasurer Peter Costello said yesterday that he would welcome talks on New Zealand using the Australian dollar, rather than creating a new currency.
Last night, the kiwi closed at 41.79USc.
Anzac finance union wins support
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