CANBERRA, Feb 8: Australia’s prime minister said on Wednesday a single currency with free-trade partner New Zealand wasn’t on his policy agenda, but added he wouldn’t rule it out if economic conditions warranted the change.

Australian prime minister John Howard was meeting with his New Zealand counterpart Helen Clark here for annual bilateral talks on economic and world affairs.

Australia has previously said that it does not want to give up its Australian dollar for a new currency.

“Time will tell, I’m not pushing for a single currency,” Howard told reporters at a joint press conference after the meeting.

“If there is a natural momentum in both countries dictated by economics and business, so be it, but it’s not a policy objective of my government,” he added.

Howard said he agreed with Britain’s decision not to compromise its own monetary policy by adopting the euro.

Clark, who controls the smaller of the two economies, said setting a single monetary policy for both countries had complex implications because their business cycles differed due largely to different mixes of commodity exports.

The two leaders used their meeting to discuss improving business and banking links across the Tasman Sea which divides them.

They also discussed their involvement in the East Asia Summit in December last year which aims to create a giant regional trade bloc.

Also on the agenda were the two countries’ military involvement in Afghanistan and building understanding between faiths in the era of global terrorism.—AP