23 Sep 2011

Exporters wary of turmoil on global markets

7:40 pm on 23 September 2011

Exporters are reporting a silver lining to the turmoil that has swept global financial markets since Thursday, but warn it could yet affect sales.

Exporter Wool Services International says the high New Zealand dollar has kept buyers on the sidelines in recent months.

It says the fall in the kiwi since the US Federal Reserve gave its downbeat verdict on the American economy on Thursday has re-invigorated buyers.

However, it says once buyers have replenished their stocks, that demand could quickly fall away again.

It says that will especially be the case if turmoil on world markets spills over to affect consumer demand.

The G20 group of wealthy countries, the International Monetary Fund and the World Bank are in line to make statements over the weekend aimed at counter-acting the spreading gloom.

At 5pm on Friday, the New Zealand dollar was buying US78 cents, up slightly from its low of 77.5 cents in the morning.