RESERVE BANK

Dominion, Volume 33, Issue 192, 10 May 1940, Page 12

RESERVE BANK

Decrease. In Sterling Funds NOTE ISSUE LOWER State Advances Little Changed A decrease of £189,9-11 brought the sterling exchnnge funds of the Reserve Bank of New Zealand on Monday down to £13,658,465. Hairy advances are higher by £9-1.121, but. advances to the State for oilier purposes are tiiieimnged at £19.360,000.” The note issue totals xli.925.943. a further decrease of £19,297. The statement of assets and liabilities of the Reserve Bank as at, the dose ot business on Monday, May 6, is as follows :—

♦Expressed in New Zealand currency. Proportion of reserve (No. 7 less No. 5) to notes and other demand liabilities. 41.419 per cent., compared with 41.289 per cent, on April 29. The reserve on Monday amounted to £16,450,396, compared witli £16.637,71.) on April 29, a decrease 0f_£187,3.i3. A year ago the reserve was £7,461,316, and on May 8, .1938. it totalled £20,262,970. Sterling exchange on Monday amounted to £13,658,465, compared with £13,848.406 on April 29, a decrease of £189,941. Liabilities in currencies'other than New Zealand currency on Monday were £9938 (a decrease of £2588), thus reducing the bank’s net overseas assets to £13.648.527, compared with £13,835,880 on April 29, a decrease of £187,353. A year ago the bank’s net overseas assets amounted to £4,6:>9,477, and on May 8. 1938, they totalled £17,461,182. The bank’s gold holding remains unchanged at £2,801,839. Subsidiary com on Monday totalled £158,920, a decrease of £3960. ... Advances to the State Marketiitg -Department. on Monday stood at £3,012,259, an increase of £94,121. Advances to the State for other purposes remain unchanged at £19,360,000. Investments again show a decrease, Monday’s total of £2.535.304 being £422.245 less than on April 29. Other assets total £177,680, a decrease of £36,148. The note issue on Monday totalled £17,925,943, a further decrease of £19,297.

Demand liabilities to the State totalled £5,931,084, a decrease of £897,047. The trading banks’ balances totalled £15,694,062, an increase of £348,292. Other demand liabilities amounted to £166,197, a decrease of £10,63-1. Other liabilities totalled £977,242. a further increase of £23,101. . The statement balances at £42,204,467. a decrease of £558.172. 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.

UABILlTil Hub. £ s. <1. 1. (1eneral reserve fund 1,500,000 0 0 Bank notes 1 7,925,943 10 0 Demand liabilities — (a) Slate ....... (bj Banks 1 5,931,084 5.694.062 G 7’ 1 (e) Other 166,197 4. Time deposits’ — 5 Liabilities, in eurrencies bthpr than X.Z. currency . • . • 'J.B38 6 10 0. Other liabilities ... 977.241 11 0 C(X.Z.)4 2.204,407 9 10 assets. 7. Reserve — 1 s. d. (a) Gold 2,801.839 0 0 *(b) S t e r I i n g exelmiige 13.6».)b.4b«> 6 10 (c) Gold exchange . 8. Subsidiary coin .... 158,919 13 11 9. Discounts — (a) Commercial and Agricultural bills (bl Treasury and local body bills . . 1<J. Advances —- (a) To the State or State undertakings: (1) Marketing De3.512,259 6 partment CD Dor other purposes 19,360.(101) 0 0 (b) To other public authorities ~ (c) Other 11. Investments 2,535.303 1.8 8 12. Bank buildings .... 13. Other assets 177,680 £(N.Z.) 42,204,407 9 10

Sterling exchange. . Reserve ratio 1937. (£N.Z.) per cent. December 27 16.992.748 70.323 1038. August. 2!) . .. 13,695,000 67.2 September 26 October 31 .. 11,449,447 7,707.697 60.7S5 46.09 November 28 4,828,302 32.680 December 26 4.678.233 27.882 1930. January 30 . 4.133.586 25.75 February 27 4..S39.555 25.799 Marell 27 .. 4,659,S74. 25.419 A pril 24 4,629,061 25.11 May 29 ...» 4,564.206 25.136 June 26 .. 5.600,692 30.249 July 31 ... 5,576 957 28.132 Aug. 2S .... 5,690.208 28.112 Sept. 25 ... 5.311.6S 25.82’2 Oct. 30 .... 5,743.087 2; >.367 Nov. 27 6.624.585 28.477 Dee. 25 ... 8.717.735 32.200 1940. Jan. I ..... 7,036,750 27.947 Jan. 29 .... 8,725.720 30.508 |?pb. 5 .... 9,242.501 31.588 Feb. 26 .... 10.842.606 32.812 Mar. 4 .... 10.020.S71 32.377 Mar. 25 . . 13.033.OSO 40.101 A pr. 1 .... 12.707.S90 39.224 12.599.193 39.2 12.SS2.659 39.592 Apr. 22 .. Apr. 29... May 6 .... 13.683.506 13.8 18.406 13.658.465 40.927 41.2S9 41 419