So the RBNZ printed $60b to buy freshly-minted Governnent bonds off banks, then has accepted the cash back from the Government as the bonds have matured and have sold a few still-to-mature bonds back into the market for cash. 1/2
Notice that RBNZ have not exactly shrunk their balance sheet in the last few years - they have just gone from holding Govt bonds to holding piles of foreign currency assets (grey). They are using that $33 billion(!) stash to intervene in currency markets every now and then to protect the $NZ. [5/n]