Switching currencies when travelling between Australia and New Zealand is an inconvenience that could be rescinded, according to a recent productivity commissions’ paper.
The UK Telegraph reported today on the two nations’ commissions discussion about combining their currencies to reduce business costs, given that Australia is New Zealand’s largest trading partner. In retrospect, the Kiwi nation ranks fifth in terms of Australia’s top trading nations.
According to the International Business Times, the New Zealand dollar has reached a six-month high against the Australian dollar due to Australia’s $480 million trade deficit.
However, the paper also states that the Euro as a single currency has not provided a positive argument in favour of combining ANZ’s monies.
"Where business cycles and economic changes affect the two countries differently, there could be costs in not having independent exchange rates,” the paper said. “The recent experience of countries in the eurozone is instructive in this respect."
Australian Prime Minister Julia Gillard is reportedly not in favour of a single ANZ currency.