N.Z. EXCHANGE

Hokitika Guardian, 17 June 1933, Page 5

N.Z. EXCHANGE

MISAPPREHENSION EXPLANATION CY MR COATES (Per Press Association—Copyright) WELLINGTON, June 16. “From various references in the newspapers, there still appears to bo some misapprehension as to the Government’s exchange transaction,” states the Minister of Finance, the Rt. Hon. Mr Coates, to-day. “To make the position clear, I wish to state that the London exchange requirements of the Government for interest and other ordinary purposes for last financial year were fully covered before the question of raising the exchange rate arose. Thus the only additional expense for 193233, arising out of the increase of the rate is £470,000, for the purchase of sui-plus exchange, under the banks indeminity (exchange) Act, Tho amount of £1,910,000 so purchased was the surplus to requirements for the last financial year, and the apparent contradiction contained in the recent statement of mine to the effect that funds taken .over from .the banks had not so far exceeded the amount needed to meet the Government’s ordinary interest requirements in London* ms^.o;}plained by the fact that this latstatement had reference to the current financial year.”

Exchnnge that has been purchased under the Bank’s Indemnity (Exchange) Act, will of course he used, where necessary, for meeting interest and other normal requirements in London, for obviously there is no need to make further remittances to London while funds are held in that centre. Needless to say as funds, purchased under the exchange idemnity arrangement, are so used, necessary adjustments will be made in public accounts.’