N.Z. EXCHANGE

Hokitika Guardian, 15 June 1931, Page 2

N.Z. EXCHANGE

BLOCKING THE PROFIT OB A H P I 1 H Aul-.i The exchange rates Australia on New Zealand are liicicseU ho.ii to-day, says the “tydney Morning Jjeiaid” o, June 4th, Uie Uuying rate being fixed at £llß 12s 6(1 Australia for £lot) New Zealand and the selling rate £ll9 7s 6d for £IOO New Zealand. The previous rates were, buying £ 101 10s, selling £llß 12s (id, with concessions to £l(Jj lor genuine trade transactions. It was found that genuine trade trails .lotions had! a very wide meaning and especially in the direction of importing from New Zealand for re-ex-port from Australia, so- as to get the advantage of the extremely favourable trade rate between Australia and New Zealand as against the unfavourable trade rate between Australia and lamdon. With a. selling rate of £lO5, Australia, on New Zealand and buying

rate of £l3O London on New Zealand a very profitable business could, be done in buying in New Zealand for re-export from Australia. It was also found/ that exporters drawing bills on New Zealand would sell them outside the hanks because of the high rate which could bo obtained it wont up to £l2o—while the importers would request the hanks to remit money at £loo Australia-for £IOO Now Zealand to pay for goods purchased in New Zealand. The result was that the banks had no buying business .on NonZealand. and yet they were pre-sod to pay for inni"-U Com that Dominion.