HIGHER EXCHANGE RATES

Sun (Auckland), Volume IV, Issue 938, 3 April 1930, Page 13

HIGHER EXCHANGE RATES

LONDON AND AUSTRALIA CONCESSIONS TO TRADERS Further increases in the rates of exchange on London and Australia have been made by the associated banks. The quotations for buying bills on London have been increased by £1 17s 6d per cent, and those for selling drafts by £1 7s 6d per cent. —both movements of unprecedented magnitude, the largest previous increase having been 1 per cent, all round in February. The rates are still substantially lower than the current Australian tariff, introduced on March 25; indeed, the margin has been increased. Sight bills in London are quoted at £ 1 17s 6d below the rate in Australia and sight drafts at £1 13s 9d lower, while telegraphic transfers, now at a premium of 5 per cent., are £1 10s cheaper than from Australia. The associated banks have maintained the lower tariff by a complementary adjustment in the intercolonial rates, with a concession for ordinary trade transactions which provides exchange for the latter at the normal rates previously current. Following are the revised rates of exchange on London, the quotations being the amounts now respectively offered for £IOO bills and charged for £IOO drafts:

.vhich had been in force since October .’2, 192 8, were revised on February 17, concurrently with alteration of the London rates. The discount on bills was then increased from 5s to 30s in the vase of the eastern states, with similar variations for other parts of Australia; it has now been increased to £ 1 17s 6d. The premium on drafts was increased from 5s to 10s; that alteration has been revoked and the selling rates now quoted are identical with those previously in force. Following are details of the new tariff: Victoria. New South Wales, Tasman id S uth Australia.—Buying. £9B 2s Ud per cent.; selling, £IOO ss. Queensland. —Buying. £9B per cent.; selling, £IOO 7s 6d. North of Rockhampton: Buying, £97 15s per cent.; selling, £ 100 12s 6d. Western Australia. —Perth and Fremantle: Buying, £97 15s per cent.; selling, £IOO 12s Gd. All other places: £97 lus per cent.; selling, £IOO 17s 6d. The official announcement states: “A concession of up to £1 12s 6d per cent, in the buying rates will be allowed for ordinary trade requirements other than exchange transactions.” The concession previously was 20s per cent., against the increase in the discount of 255; the present concession means that ordinary trade transactions will be subject to only the normal commission rate of exchange. The special tariff is imposed simply to prevent Australian transactions with London being passed through New Zealand to secure the more favourable rates.

NEW ZEALANP ON LONDON Buying. Selling. On demand . . £103 10 0 £104 7 G 3 days 103 S 0 30 days . .. 103 0 0 104 0 0 60 days . .. 102 10 0 103 12 6 90 days . . . 102 0 0 103 5 0 120 days . . 101 10 0 Telegraphic transfer 105 0 0 Rates of exchange with Australia,