RESERVE BANK

Dominion, Volume 32, Issue 153, 24 March 1939, Page 12

RESERVE BANK

Sterling Exchange Decreases

STATE BORROWING LOWER

Reserve Ratio 25.129 Per Cent. 'J’he sterling exchange funds, of the Reserve Bank of New Zealand on Monday totalled £4,547,863, a decrease on last week of £43.823. The bank’s net overseas funds amount to £4,515,396. The proportion of reserve to notes and other demand liabilities is 25.129 per cent., fractionally higher than last week. Advances to the Primary Products Marketing Department now total £7,388-6-10, a further increase of £71.31-1. Am vances to the State for "other purposes are again lower and now stand at £12,250,000, a decrease of £415,000. The note issue at £14,825.501 is higher by £26,235. State deposits at £4.848.1<-s-iiow a decrease of £646.188, while the trading banks’ cash reserves show an in crease of £419,573. The. statement of assets and liabilities of the Reserve Bank as at the close of business on Monday, March 20. is as follows :— LIABILITIES. £• s. d. 1. General reserve fund 1,500,(100 0 0 2. Banknotes 14,825,501 0 0 3. Demand liabilities — (a) State 4,848.171 11 4 (b) Banks 8,9.88,979 3 3 (ci Other 455,843 It 9 4. Time deposits .... — 5. Liabilities in currencies, other than New Zealand currency •• 32,4(17 3 9 6. Other liabilities . . 305,889 4 10 £(N.Z. 130,956,852 0 11 ASSETS. 7. Reservefa) Gold 2.801,791 0 0 (b) Sterling Q exchange* 4.u4i.8b3 - 9 (c) Gold exchange — 8. Subsidiary coin . . 203,80'- 1- 3 9. Discounts—(a) Commercial & agricultural bills — (b) Treasury and local body bills . — (10) Advances — (a) To the State or State undertak-r ings— ’■ ill Primary Products Marketing Department .•. 7,388.640 510 12) For other purposes 12,250.000 0 0 lb) To other public authorities .... — (c) Other — 11. Investments .... 3.651.028 6 4 12. Bank buildings .. —, r „ 13. Other assets .... 113,666 13 9 £(N.Z. >30.950,852 0 11 ‘Expressed in New Zealand currency. Proportion of reserve (No. 7 less No. 5) to notes and other demand liabilities, is 25.129 per cent., compared with 25.026 per cent, on March 13, 25.017 per cent, on March 6, and 73.143 per cent, on March 21. 1938. The reserve on Monday amounted to £7,317,187, compared with £7,376.349 on March 13, a deyrease of £59,162. On March 21, 1938, the reserve stood at £19,977,383. Sterling exchange expressed in New Zealand currency this week amounts to £4,547,863, compared with £4.591,686 on March 13. n decrease of £43.823. There are liabilities in currencies other than New Zealand currency this week of £32.467 (an increase of £15,339). thus reducing the net overseas assets of the Reserve Bank to £4,515,396. A year ago the overseas assets of the bank amounted to £17,175.592. Gold remains unchanged at £2,801,<91. Subsidiary coin at £203.863 shows a decrease of £547. Advances to the Primary- Products Marketing Department total £7.388.640, an increase of £71.314.

Advances to the State for “other purposes” show a further decrease of £415,000. and now stand at £12,250,000. Investments at £3.6'51.028 are unchanged. Other assets at £1.13,667 show an increase of £17,958. The note issue has increased by £26,235 to £14.825,501. at which figure it is £1,295.260 in excess of the total of £13.530,241 on March 21, 1938. Demand liabilities to the State at £4.848,172 are down by £646,188. The trading bunks’ reserve balances now total £8.988 079, an increase of £419,573. Otlier demand liabilities amount to £455.844, a decrease of £155.972. Other liabilities at £305,889 show a decrease of £29,084.

The statement balances at £30,956.852, a decrease of £370,098.

Movements in Sterling Exchange,

The movements in the sterling exchange held by the Reserve Bank of New Zealand during the last few months and the decrease in the ratio percentage of reserve to notes and other demand liabilities. are shown in the following table: —

Tile statutory minimum of the reserve ratio is 2li ocr cent. The Money Market tv Telegraph.—Pros- t-'j, <'oovrietit LONDON. March 22. Discount and short loan rates on the London market, compared with those for la. st week, are as follows:— March 15. March 22. p.c. p.c. Day-to-day loans . . J s Fine trade bills (3 months) 2£to3 21 to 3 Bank bills (3 months) 9-16 5-8 Bank bills (6 months! 5-8 i Treasury bills (2 months) 9-16 9-16 Treasury bills (3 months! 9-16 9-16 NE\V YORK, March 22. Call money’ is unchanged al 1 per cent. Gold Mining Returns The Urey River return to March 21 totalled 2360 z. for 132 hours from 95.313 yjirds. Victoria Nyanza Sugar rhe Victoria Nyanza Sugar Company yesterday cabled the Stock Exchange Association as follows:—Finished crushing. Tons of sugar manufactured in bags 7596, in process 57.

Sterling Reserve exchange ratio 1937. £ (N.Z.) percent. Dee. 27 16.992,748 70.323 1938. Aug. 29 13.69,7.000 67.2 Sept. 5 12.639,000 65.847 Sept. 12 12.681.343 66.428 Sept. 19 12,247.006 63.853 Sept. 26 11.119.117 60.785 Oct. 3 . 10,594.978 57.259 Oct. 10 9,900.233 57.903 Oct. 17 9,118.330 52.27 Oet. 24 8.313.575 48.451 Oct. 31 7,707.697 46.09 Nov. 7 6,633.031 39.733 Nov. 14 5.602.977 36.825 Nov. 21 5.029.137 33.723 Nov. 28 4.828.302 32.685 Dec. 5 4.200,856 29 834 Dec. 12 4.572,031 30.333 Dec. 19 4,368.095 28.109 Dec. 26 4.678.233 27.882 1939. Jan. 2 4.017.232 26.13 Jan. 9 3,933.851 25.526 Jan. 16 4.373..05 26.782 Jan. 23 4,395,525 26.695 Jan. 30 4,133.586 — i i"l Feb. 6 4,074.954 25 047 Feb. 13 4.164.499 25.073 Feb. 20 4.523.031 25.378 Feb. 27 4.839.555 25.799 If nr. 6 4.705.897 25.017 Mar. 13 4.591.686 25.026 Mar. 20 4.547,863 25.129