* NZ's English says wishes NZD reflects economy, not flows
* Sees China playing greater FDI role in country (Recasts with Reuters interview, adds details)
By Eric Burroughs
HONG KONG, Oct 5 (Reuters) - New Zealand Finance Minister Bill English said on Monday that he wished the country's strong currency reflected its economic fundamentals rather than currency market flows.
English also said that the government was trying to help the economy by getting its finances into shape.
"I wish it would reflect economic fundamentals rather than trade currents in the forex market," English told Reuters in an interview on Monday when asked about the currency.
The New Zealand dollar
The government and policymakers have repeatedly said the strong kiwi is not helpful for the country's exports but partly reflects the U.S. currency's broad slide.
English said that New Zealand's exporters have had to get by with a stronger currency for much of the past four years but that the government can best help by getting its finances into shape. The country's central bank is in charge of currency intervention.
New Zealand emerged from its longest recession on record in the second quarter but growth was a meagre 0.1 percent.
"We are realistic about how testing this recovery could be," English said.
English also said New Zealand's interest rates were likely to remain low when compared with neighbouring Australia.
"Our interest rates are likely to be lower for longer than for instance Australia," English told CNBC television earlier in the day.
The Reserve Bank of New Zealand has slashed rates to a record low 2.50 percent and pledged to keep them there or lower until the latter part of 2010 to help the economy.
The RBNZ is expected to leave rates unchanged at its next review on Oct. 29, according to a Reuters poll, with investors eyeing a first rate hike early in 2010. [NZ/POLL]
The Australian central bank holds its October policy meeting on Tuesday and most analysts expect it to keep rates at 3.0 percent [AU/INT], though two influential economic columnists say the central bank is likely to raise rates to 3.25 percent. [ID:nSYD44556]
English is meeting investors in Hong Kong and London to promote New Zealand, which relies heavily on foreign borrowing to fund its current account deficit -- totalling nearly 100 percent of the country's economy -- due to low levels of household savings.
The current account gap is a vulnerability, and the country's need to attract foreign capital may mean that China plays a greater role in providing foreign direct investment, English said.
"They are a likely to become more significant investors in New Zealand," he said.
English also said that Asian central banks diversifying their reserves and making a small increase in Australasian bonds was making a "big difference" for New Zealand as it tries to lure foreign investors to finance its deficit. (Additional reporting by Mantik Kusjanto in Wellington) (Editing by Kim Coghill)