EXCHANGE RATES

Gisborne Herald, Volume LXVI, Issue 19980, 4 July 1939, Page 6

EXCHANGE RATES

UNOFFICIAL MARKET FUNDS FOR IMPORTS In order ito overcome the restriction on buying overseas automatically imposedl by the rationing of official sterling funds, it is apparent that many Auckland, merchants have made use of opportunities, to acquire .credits’ in the unofficial l- market. .Rates! vary, but there has been a good deal of business done on the basis of £l3O to £132 10s New Zealand currency for £IOO sterling.' Sums are being offered up to £l4O New Zealand 1 currency for £IOO sterling. One merchant states that in the past month he has been offered various amounts - totalling approximately £20,000.

Except for spirits and tobacco, most arrangements for the importation of merchandise under the plan by which the purchase money will not be drawn from Dominion funds appear to have been effected in respect of Canadian and United States goods. There have been a number of such arrangements, drafts being met by the payment of sums on fixed deposit with, the trading banks.

The Federation /of British Industries has advised its members not to agree to leave funds in the Dominion for payment of goods/ unless an assurance is forthcoming from the New Zealand Government whep the money may be remitted' and at a definite rate of exchange. As such assurance is not being given, British manufacturers generally have not been disposed' to accept the risks, which would fall entirely on them, of leaving funds here on indefinite conditions.