Although trading in foreign exchange markets is inherently very risky, the Reserve Bank (RBNZ) boosting its capacity to do so makes sense both from monetary policy and financial stability perspectives, Westpac New Zealand Chief Economist Kelly Eckhold says. Speaking in in the latest episode of interest.co.nz's Of Interest podcast, Eckhold who formerly worked as the RBNZ's manager of foreign reserves and at the International Monetary Fund, says the RBNZ's foreign currency intervention capacity is likely to increase significantly over the next two or three years from the NZ$17.725 billion as of its latest disclosure. ... (full story)