New Zealand has been influenced by the British Crown for a long time. The country gained relative independence in the middle of the 19th century, when its own government and parliament were created. Fifty years later, at the beginning of the 20th century, New Zealand received the status of a British dominion, and after the Second World War the country became independent, although it is still a part of the United Kingdom.
The history of the New Zealand monetary system is inextricably bound up with the history of the country itself. New Zealand Dollar was issued for the first time in the middle of the 19th century, but did not receive recognition. After the country has gained the status of a British dominion, New Zealand Pound was introduced. It was not until 1967 that the New Zealand Dollar (NZD) replaced it.
Its exchange rate was immediately connected with the US dollar’s rate. Nowadays, the currency’s volatility is being influenced by various factors of the country’s domestic and foreign economy, which is heavily tied to agriculture. The main export commodities in New Zealand are sheep wool and meat, and dairy products, which have a great influence on the New Zealand Dollar. Another important direction in the development of the economy of New Zealand is connected to renewable energy sources. The country became very popular among tourists after the films “The Hobbit” and “The Lord of the Rings” were released. Ethno-tourism is also on demand, given the fact that Maori are the indigenous people of New Zealand.
Over the past few decades, Singapore has evolved from a backward country into a country with a thriving economy. The country joined the so-called four Asian tigers, which also includes South Korea, Hong Kong and Taiwan. It is these countries that have demonstrated the highest rates of economic growth over the past few decades.
The Singapore Dollar (SGD) is affected by the country’s economy, tied to the production and export of high-tech products, as well as products of the fuel and energy complex. In addition, Singapore is a banking center in Southeast Asia. The functions of the regulatory organization in the country are performed by the Monetary Authority of Singapore. Moreover, this organization is engaged in the issuance of banknotes, monitors the sphere of financial services, payment systems and is responsible for the financial stability of the state.
The NZD/SGD pair is far from being the most prevailing one in the Forex market. Newcomers to the market rarely trade within this pair. At most of the times it becomes a part of the investment portfolio of experienced traders that distinguish reasonable risk from unjustified. The exchange rates of both currencies are greatly influenced by the economic indicators of countries. But those indicators can be completely opposite,and, in this regard, the correlation between NZD and SGD is very weak. At the same time, the pair has very high volatility, it is very difficult to predict the direction of the price, but if you approach the trading correctly, then the NZD/SGD pair can bring quite substantial profit.