NEW ZEALAND EXCHANGE

Wairarapa Times-Age, 14 August 1939, Page 6

NEW ZEALAND EXCHANGE

EXTENSIVE “BLACK” MARKET IN LONDON.

RATES TENDING TO STIFFEN

(By Telegraph—Press Association.! CHRISTCHURCH. This Day

Nev? Zealanders with overseas funds or incomes at their disposal arc receiving from 5 per cent to 12 per cent more for their money by selling it at a premium to local brokers, who in turn pass on the funds to importers. There is evidence that this so-called “black” market is stiffening, its rates. At the beginning of the year, these rates were about 5 per cent over and above the New Zealand standard exchange of 25 per cent, but since then the premium has risen to at least 12 per cent in some cases. • One city firm which wanted £2OO sterling to meet an English order had to pay £2BO in New Zealand currency for the accommodation rather than see their business suffer. The principals of the firm were glad to pay the extra amount. As more and more people have discovered this way of milking their overseas incomes larger the exchange of foreign for New Zealand funds has grown to large proportions and the commonest rate for small amounts, ranging up to £lOO English, is £132 10s in New Zealand currency. Importers wanting funds additional to those which they had been able to get from the banks have been quick to gras]) I hc opportunity.