Jan 25 (Reuters) -
The Reserve Bank of New Zealand said on Wednesday the central bank and the country's minister of finance had agreed to increase foreign reserves holdings for the first time since 2007, in an effort to support the foreign exchange market.
As part of the framework, both the parties are required to agree on a level of foreign reserves that should be held to be able to intervene in the New Zealand dollar market and support the monetary policy objectives.
"The transition to this higher level of foreign reserves will take place over a number of years, in order to minimise the market impact," RBNZ Governor Adrian Orr said in a statement. (Reporting by Himanshi Akhand in Bengaluru; Editing by Maju Samuel)
