N.Z. EXCHANGE

Hokitika Guardian, 1 July 1932, Page 5

N.Z. EXCHANGE

• POOL REPEAL QUESTION OF RAISING RATE, (Per Press Association— Copyright.) WELLINGTON ? June 30. The Exchange Credits Pool. regulations are repealed by an Order-in-Coun-eil in the Gazette to operate as from mid-night to-night. Commenting on the teimination of the arrangement, the Acting-Minister of Finance, Mr Forbes, reiterated that the release of the pool in accordance with what, had b|jjn understood .alii along, that it. would not be kept in operation one moment longer than the Government found necessary. Mr Forbes emphasised, the requirement that the terms and conditions on which the export licences had been issued still applied to aKI of the, goods which have been shipped up till midnight to-night. All the documents pertaining to such goods must be delivered to the banks concerned.

Mr Forbes also repeated'his opinion that the abolition of the pool will not result in any marked fluctuation on the Dominion’s exchange rate. ( NO IMMEDIATE RISE. , STATEMENT BY BANKER, WELLINGTON.' June 30, According to the information in banking circles, there is unlikely to he any immediate rise in the exchange rates. ■ / “You can take it that there will be no' sensation in regard to exchange,” said one of the leadi'.’g bankers. “In the outside market, they may operate at a higher rate, but this branch of financial activities is not extensive. The New Zealand banks will not necessarily follow .suit.” SPECULATION IN SYDNEY. ON QUESTION OF EXCHANGE. • SYDNEY, ‘ June 30. Discussing the question of the New , Zealand exchange rate, the financial editor of the “'Sydney Morning Herald” remarks: “Will"the lifting of the restrictions make any difference? That question is exercising the minds of the , Australian bidders with New Zealand;” • ' •

The writer then proceeds: ‘The money which went to New ■ Zealand from Australia when stories of repudia-, tion were flying around here, is nowseeking repatriation, and it is finding difficulties in the way. “Regarding the position of New Zealand, it js considered that the banks themselves will impose restrictions on dealings in that they will sell exchange on Londoh in " New Zealand only for bona fide trade transactions. Also, any attempt ,to transfer money from Australia to London, via New Zealand, will, if possible, be prevented. The limitation of the exchange transactions in' this manner may bring about open market operations. In New Zealand there are sure to be some exporters with London / funds available, and when they are converting these to New Zealand currency these will desire better terms than the banks offer, if the banks restrict their offerings. The importers and othefs a ;inz-.-A : New Zealand who find d fficultym get- . ting the exchange that they want, may go past the banks and buy from the " exporters.” 1 '

STATEMENT BY PREMIER. WELLINGTON, June 30. In the course of his statement concerning the end of the Exchange v' -Credits Pool, Mr Forbes says: “As long as the rates of exchange are governed by the demand for, and supnly of exchange, arising out of genuine New Zealand business overseas, no legitimate objections can be raised by , any section of the community,, whatever these rates of, exchange may be. Various and far-reaching changes of monetary policy are being advocated, but that is another matter, in connection with which it is not desirable to take any action until the results of the Ottawa Conference, or perhaps ’also, the subsequent International Confer- '? ence, are known.” , £