STERLING FUNDS

Wairarapa Times-Age, 6 January 1939, Page 4

STERLING FUNDS

RESERVE BANK HOLDING AGAIN DOWN. LOWEST FIGURE RECORDED TO DATE. (By Telegraoh—Press Association.) WELLINGTON, This Day. Following on fluctuations last month, the Reserve Bank’s holding of sterling exchange last week decreased by £66.1.000 to a new low level of £N.Z.4,017.232. During the 12 weeks from August 29. when the total amount of sterling exchange held was £13.600.000, there was a rapid and continuous decline to £ N.Z.5.029.000 on November 21, and the following week the holding >f London funds dropped below the £ N.Z.5,000,000 level. On December 5, the amount shown was £N.Z.4.200,856. and the Minister of Finance announced control of imports and exports and exchange. Since that date there have oeen fluctuations, but the latest figure is the lowest yet recorded. The bank's reserve on Monday stood at £6.806,068, and the proportion of the reserve to notes and other demand liabilities was down to 26.13 per cent, the statutory minimum being 25 per cent. A year ago the reserve totalled £19,216,700, the proportion of reserve Io notes and other demand liabilities being 70.088 per cent. Other features of the Reserve Bank return are a decline of £ 146.535 in the note issue to £16,494,890, a sharp decrease in State deposits, and an increase in dairy produce advances. Advances lo the State for other purposes stand at £11,000,0(1. a decrease of .£200,000.

The Hole issue is nearly J.' J .lou.ulid in excess of that of a year ago.