The Reserve Bank has analysed recent interventions by Japan and Switzerland to bring down their currencies and found similar policies were not appropriate for New Zealand.
Since 2009, Japan and Switzerland have sold large amounts of their own currencies to lower their currencies and keep local exporters competitive.
The Swiss have so far been successful in keeping the franc from rising against the euro.
But the Reserve Bank of New Zealand says the intervention has built up billions in potential foreign exchange losses for the Swiss central bank.
It says intervention would not have been appropriate to tackle the high-flying New Zealand currency.
The bank says both Japan and Switzerland were battling deflation and falling export prices but the opposite applied to New Zealand since 2009.
It suggests intervening in the market for New Zealand dollars could have created an inflation problem.