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Reserve Bank of New Zealand Act 2021

Central bank functions - Foreign exchange - Foreign reserves management and co-ordination framework

142: Purposes of framework

You could also call this:

"The main goals of the Reserve Bank's plan"

Illustration for Reserve Bank of New Zealand Act 2021

The framework has some main purposes. You can think of it like a plan to help the Reserve Bank of New Zealand do its job well. It aims to help the Bank achieve its main goals, which are outlined in section 9(1), and follow any directions it gets under section 134. The framework also helps the government and the Bank work together on managing foreign reserves. You can see that the Minister and the Bank must make sure the framework aligns with these purposes.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS325357.

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141: Bank must hold and manage foreign reserves in accordance with framework, or

"The Bank must carefully manage New Zealand's foreign money according to a guide."

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143: Minister and Bank must agree on framework, or

"The Minister and Reserve Bank must agree on rules for managing foreign money."

Part 3Central bank functions
Foreign exchange: Foreign reserves management and co-ordination framework

142Purposes of framework

  1. The purposes of the framework are to—

  2. facilitate the Bank’s ability to—
    1. achieve its main objectives in section 9(1); and
      1. comply with directions given under section 134; and
      2. recognise both the Crown’s and the Bank’s interests and roles in relation to the management and use of foreign reserves and to provide a mechanism to identify and co-ordinate those interests and roles.

        1. The Minister and the Bank must ensure that the framework is consistent with these purposes.