DislikedAgreed, never underestimate a central bank power.
heck, they can simply PEG their currency to USD. Then what?Ignored
DislikedThe other easier option is to introduce higher taxes for all foriegn investors. That will take care of all this mindless buying of NZD assets.Ignored
It's not so much a war between the central bank and traders, but rather a war between the central banks of different countries.
What's driving up the NZD is the excess liquidity, created by the Fed and BOJ. What is supposed to help along the struggling sectors of their economies is actually flowing into more promising fields, or anything that's currently 'hot' and creates inflationist bubbles there. New Zealand is one of these bubbles. It's simply one of the favorite locations on our planet at the moment.
Finally a few thoughts, if it's really such a big problem.
For many industries, the benefits of cheaper imports for raw materials like oil actually outweigh the lower export prices.
Even farmers etc., who use domestic resources to create what they sell abroad, would face no disadvantage, if they choose to import from the countries, where the exported to. For example they can afford to sell their meat nominal cheaper in Japan, because they can get as cheap electronics or cars in return. For the meat they sell in New Zealand, they can in return buy local stuff, indifferent from the exchange rate, as well. The same for trade with e.g. Australia, which has a strong currency, too.
Even better for people or corporations that have been saving their NZD, because now they can buy even more consumer or capital goods from abroad, which makes them richer in real wealth.