OVERSEA EXCHANGE

Wairarapa Times-Age, 21 October 1938, Page 5

OVERSEA EXCHANGE

THE NEW ZEALAND RATE ON LONDON SMALL INCREASE MADE BY BANKS SEQUEL TO HEAVY DRAIN ON STERLING (By Telegraph—Press Association.) WELLINGTON, This Day. An increase in the exchange rates, New Zealand on London and New Zealand on Australia, was announced yesterday by the trading banks and the revised rates will operate as from this morning. The London rates have been raised 10s all round. There has been a heavy demand for London exchange lately, and a measure of rationing has been enforced by the trading banks, all applications for overseas drafts being closely scrutinised.

As has been apparent for some weeks there has been a substantial drain on the sterling exchange funds of the Reserve Bank of New Zealand, the total amount held as at Monday last being £9,118,330, a decline on the week of £841,905. The monthly returns of the trading banks for the period ended September 26 show London funds at £4,657,743, a decline of £1,179,000 since August 29. The chairman of the Associated Banks announces that it has .been decided to increase the telegraphic transfer (T.T.) selling rate on London from £124 10s to £125, to accord with the selling rate of the Reserve Bgnk of New Zealand. The T.T. buying rate will be increased correspondingly, and the other usances, both selling and buying, accordingly. Consequently, on and after today, the following rates' will be quoted:— New Zealand on London. Buying Selling (Per £lOO (Per £lOO London) London) £. s. d. •£ s - d124 10 0 T.T. 125 0 0 124 1 3 On demand 124 19 6 124 0 3 3 day’s sight —' 123 16 3 30 days’ sight 124 18 3 123 11 3 60 days’ sight 124 17 0 123 6 3 90 days’ sight 124 15 9 123 1 3 120 days’ sight — In accordance with the New Zea-land-London rates, those on Australia are being altered simultaneously to the following:— New Zealand on Australia. Buying Selling (Per £lOO (Per £lOO N.Z.) . N.Z.) £ s. d. • £ s. d. 100 10 0 100 0 0