A $300 million-plus blowout in our current account deficit is symptomatic of our overvalued dollar and is yet more proof of why New Zealand First’s Bill to amend the rules governing the Reserve Bank must be supported.

New Zealand First leader Rt Hon Winston Peters says the current account deficit which hit $2.9 billion in the June quarter is being fuelled by a flood of foreign investment.

“We as a country are earning less overseas than what foreign investors earn by speculating on our dollar. Our economy is paying a heavy price.

“It highlights the need for our Reserve Bank of New Zealand (Amending Primary Function of Bank) Amendment Bill to become law so the bank has the flexibility to properly tackle all financial challenges.”

Mr Peters says the Bill is scheduled to have its first reading in Parliament today.

“New Zealand’s deficit has ballooned to $10.1 billion, or 4.9 per cent of GDP, for the June 2012 year – up from $7.4 billion a year ago.

“All MPs have the opportunity today to stop watching the economy slide into a black hole and do something to rectify the problem by supporting our Bill,” says Mr Peters.