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Reserve Bank of New Zealand Act 2021

Central bank functions - Foreign exchange - Dealing in foreign exchange

139: Effect of Bank’s notice on duty to comply with Minister’s direction

You could also call this:

"The Bank's notice can stop it from having to follow the Minister's instructions."

Illustration for Reserve Bank of New Zealand Act 2021

If the Bank gives a notice under section 138, you do not have to follow the Minister's direction. This is unless the government makes a special order that says the Bank must follow certain economic goals. These goals must match the Minister's direction.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS289825.

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138: Effect of directions on monetary policy, or

"How the Reserve Bank follows directions that affect New Zealand's money and economy"

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140: Foreign exchange gains and losses, or

"What happens when the Reserve Bank makes money or loses money from foreign exchange"

Part 3Central bank functions
Foreign exchange: Dealing in foreign exchange

139Effect of Bank’s notice on duty to comply with Minister’s direction

  1. If a notice is given under section 138, the MPC and the Bank are not required to comply with the direction unless an Order in Council is made under section 125 that requires the MPC to formulate, and the Bank to implement, monetary policy in accordance with 1 or more economic objectives that are consistent with the direction.

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