Economists are praising the Reserve Bank's decision to build up its foreign currency assets. 

It's bought and borrowed to drive its total foreign currency holdings up by a third, to a total of almost $18 billion. 

Westpac Chief Economist, Kelly Eckhold, says it will give a signal the central bank is willing to step in if there's a shock to the economy. 

He told Tim Dower that the move should reassure people. 

Eckhold says it would be worrying if the bank didn't have the capacity.

LISTEN ABOVE

Economists are praising the Reserve Bank's decision to build up its foreign currency assets.  
It's bought and borrowed to drive its total foreign currency holdings up by a third, to a total of almost $18 billion.  
Westpac Chief Economist, Kelly Eckhold, says it will give a signal the central bank is willing to step in if there's a shock to the economy.  
He told Tim Dower that the move should reassure people.  
Eckhold says it would be worrying if the bank didn't have the capacity. 
LISTEN ABOVE

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.