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Bloomberg: Kiwi Will Drop With New Zealand Like Ireland in 2007, Jen Says

New Zealand is “like Ireland in 2007” and it’s only a matter of time before its currency enters a meaningful depreciation, according to Stephen Jen, a partner at London-based hedge fund SLJ Macro Partners LLP.

While “the case for kiwi seems compelling,” the reality is “quite different,” Jen, a former International Monetary Fund official, and colleague Fatih Yilmaz wrote in a note to clients yesterday. “New Zealand has severe structural weaknesses that are very similar to those of crisis-hit Southern European and Southern emerging-market economies. Kiwi may be 20 percent overvalued.”

Read the original article on the ‘Bloomberg’ website.

Posted on the 14/02/2014 at 5:47pm by SLJ Macro Partners LLP.