The idea of a currency union with New Zealand is a perennial talking point, and with the kiwi dollar drawing close to parity with the Australian dollar it might seem like there’s never been a better time. However, as Sheryle Bagwell discovers, there’s not much appetite for an Anzac dollar across the Tasman.
The NZ dollar has been flirting with parity with the Australian currency for weeks, and experts say it will probably get there if the RBA cuts interest rates in May. It's also fired up a long running debate—if you can swap one Australian dollar for a kiwi dollar, why not go the whole hog and forge a trans-Tasman currency union?
Former NZ Prime Minister Helen Clarke once said that a currency union was ‘inevitable’. That was 16 years ago, though, so what’s the hold up?
‘I don't think there's any appetite in New Zealand at the moment to go into a currency union with Australia,’ says Oliver Hartwich, executive director of The New Zealand Initiative, the country’s peak business lobby group.