RESERVE BANK

Dominion, Volume 33, Issue 186, 3 May 1940, Page 12

RESERVE BANK

Further Rise In Sterling Funds STATE ADVANCES LOWER Note Issue Little Changed A further increase of £1(14,901 in the sterling exchange funds of the Reserve Bank of New Zealand, brought the total hist -Monday up to £13,848,406. Dairy advances are lower by £13,833, the total being £3,418,138. Advances to the State for other purposes at £19,360,000 show a decrease of £50,000. The note issue shows little change at £17,945,240. The statement of assets and liabilities of the Reserve Bank as at the close of business on Monday, April 2D, is as follows ;— LIABILITIES.

£(N.Z.)42,762,039 9 10 ♦Expressed in N.Z. currency. Proportion of reserve (No. 7, less No. 5) to notes and other demand liabilities, 41.289 per cent., compared with 40.227 per cent, on April 22. The reserve on Monday amounted to £16.637,719, compared with £l6/171,946 on April 22, an increase of £165, n 3. A year ago the reserve was £7,590,8<1 and on May 2, 1938. it totalled £20,429,234. • . XT Sterling exchange, expressed in New Zealand currency, on Monday amounted to £13,848,406, compared with £13,683,506 on April 22, an increase of £164,901. Liabilities in currencies other than New Zealand currency on Monday were £12,526 (a decrease of £872), thus making the bank’s net overseas assets £13,835,880, compared with £13,670,107 on April 22, an increase of £165,773. A year ago the bank’s net overseas assets totalled £4,789,032 and on May 2, 1938, they were £17,627,443. The bank’s gold holding remains unchanged at £2,801,839. Subsidiary coin amounts to £162,879, an increase of £lBBl. , • n Advances to the State Marketing Department total £3,418.138, a decrease of £13,833. A year ago these advances totalled £7,366,99G. Advances to the State for other purposes amount to £19.360,000, a decrease of £50,000. A year ago these advances totalled £12,075,000. Investments at £2,9;>7,54S show a further decrease of £21.092. Other assets total £213,828, a decrease of £26,734. The note issue on Monday i totalled £17,945,240. a decrease of £482. A year ago the note issue stood at £15,717,266. . Demand liabilities to the State nt £b,825.131 show an increase of £102,292. The banks’ reserve balances totalled £15,345,770. a decrease of £84,3G4 Other demand liabilities amounted to £176,831, an increase of £31,015. Other liabilities totalled £954,140. an increase of £7517. The statement balances at £42,i62,bdJ, an increase of £55,123. Movements in Sterling Exchange. The movements in the sterling exchange held by the Reserve Bank of New Zealand and in the ratio percentage of reserves to notes and other demand liabilities, are shown in the following table: —

The statutory minimum of the reserve ratio is 25 per cent.

EXCHANGE CONTROL Action Taken In Canada OTTAWA. May 1. An order in Council requires Canadian residents to sell their foreign exchange holdings to the Exchange Control Board before May 31. The order also provides for the transfer of the Bank of Canada’s gold and exchange reserves to the Control Board. The action taken is intended to block loopholes for the flight of capital from Canada and to conserve exchange for war purposes.

London Price Of Tin

(By Telegraph.—Press Assn.—Copyright.> LONDON. May 1The price of tin is quoted as follows:— Spot, buyers £253, sellers £253/10/-’. forward. buyers £24!)/15/-, sellers £2.iO. Prices of other metals arc uucliiingeu.

Grey River Dredge Return

The Grey River dredge reports a return for the week ended May 1 of 276 ounces from 79.520 cubic yards worked in 108 hours.

£ d. 1. Gen. Deserve Fund 1,500,000 0 0 2. Bank Notes 17,945,210 10 0 3. Demand Liabilities — (a) .State 6,828,130 19 10 (b) Banks 15,345,769 18 7 (c) Other 176,831 9 0 4. Time Deposits — 5. Liabilities in Currencies other than N.Z. Currency 1 o2A) 7 4 6. Other Liabilities .. 954.140 4 8 £(N.Z.)42,702,639 9 10 ASSETS. £ s. d. 7. Deserve— (a) Gold 2,801,839 0 0 *(b) Sterling Ex. . 13,848,406 10 2 (c) Gold Exchange —— 8. Subsidiary Coin .. ■ 162,879 a 1 9. Discounts— (a) Commercial & Agricul. Bills —— (b) Treasury and Local Body Bills — 10. Advances— (a) To the State or State Undertakings: (1) Marketing Dept. 3,418,137 16 4 (2) For Other Purposes 19,360,000 0 0 (b) To other Publie Authorities — «... — 11. Investments ..... 2,957,548 11 7 12. Bank Buildings ... — 13. Other Assets 213,828 6 8

Sterling exchange. Reserve ratio • 1937. (£N.Z.) per cent. December 27 .... . 16,992,748 70.323 1938. August. 29 . 13,695,000 67.2 September 26 .... October 31 . 11,449,447 . 7,707,697 60.785 46.09 November 28 ... . 4,828,302 32.6St) December 26 .... . 4,678,233 27.882 1939. January 3 0 . 4,133.586 25.75 February 27 .... . 4,839,555 25.799 March 27 . 4,659,874 25.419 . 4,629,061 25.11 . 4,564,206 25.136 June 26 July 31 . . 5,600,692 30.249 . 5,576.057 28.132 An" 28 .. . 5,690.208 28.112 Sept. 25 . . 5,311,68'’' 25.822 Oct. 30 .. . 5,743,087 . 6,624,585 25.367 Nov 27 . 28.477 Dec. 25 , T 194 1 0 ' . 8,717,735 32.200 . 7,036,750 27.947 Jan. 29 •« . 8,725,720 30.508 Feb. 5 . < . 9.242,501 31.588 Feb. 26 .. . 10.842,600 32.812 Mar. 4 . . . 10.020,871 32.377 Mar. 25 . 13.033.980 40.401 Apr. 1 .. . 12,707.890 39.224 Apr. 8 . 12.599.193 39.2 Apr 15 . . 12.882,659 39.592 Apr. 22 Apr. 29 . . 13.683.506 . 13,848,406 40.927 41.289