The central bank is in a better position to intervene to lower the Australia dollar should it believe it is appropriate, Prime Minister Tony Abbott says.
Prime Minister Tony Abbott says the Reserve Bank of Australia (RBA) is now in a better position to intervene on the foreign exchange markets should it believe it is appropriate.
He said the central bank has been recapitalised to the tune of $8 billion through a grant made by his government.
“That enables the Reserve Bank to intervene prudently and appropriately in the market to try to insure that the Australian dollar is at the best possible level,” Mr Abbott told parliament on Thursday.
His comments come on the 30th anniversary of the dollar being floated, a decision that both sides of politics have accepted, he said.
“A floating dollar has gone up in recent times that did make it extremely difficult for many of our manufacturers to compete,” he said.
“But I am pleased to say that what goes up, can come down, and the floating dollar is now down to about 90 cents, a level which makes it much easier for manufacturers and for our exporters.