New Zealand is a parliamentary democracy, located in Oceania. Formally, it is a constitutional monarchy and a member of the Commonwealth of Nations. Executive power is exercised by the prime-minister, who forms the government and is usually the leader of the party that controls the majority in the House of Representatives, a 120-seat unicameral parliament. New Zealand ranks 70th largest economy in the world (by GDP PPP), but is 47th by GDP per capita. Around 48% of New Zealand’s merchandise exports are directed to just three markets (China, Australia and United States). Total external trade volume is 27% of GDP. The central bank, Reserve Bank of New Zealand (BRNZ), pursues an inflation-targeting approach to monetary policy and maintains a floating exchange rate regime. Because New Zealand is one of the largest dairy-producing countries in the world, the exchange rate of its currency is to some extent correlated with the price for milk (class III milk futures). Dependence on agricultural exports, high level of household debt and large external debt are usually named among key weaknesses of New Zealand economy.