N.Z. RESERVE BANK

Wanganui Chronicle, Volume 83, Issue 41, 18 February 1939, Page 15

N.Z. RESERVE BANK

STERLING FUNDS SLIGHTLY UP STATE ADVANCES INCREASE. RESERVE RATIO 25.073 PER CENT. The sterling exchange funds of the Reserve Bank of New Zealand on Monday totalled £N.Z.4,164,499, an increase of £N.Z.89,545. The bank’s net overseas funds amount to £4,151,833. The proportion oi reserve to notes and other demand liabilities is a shade higher at 25.073 per cent. Advances to the Primary Products Marketing Department at £6,552,350 have risen by £77,918. Advances to the State for "other purposes" have reached the high level of £12,505,000, an increase of £lOO,OOO. The total indebtedness of the State to the Reserve Bank this week is £18,602,350. The note issue at £15,110,912 is down by £95,342. State deposits at £3,504,717 are up £266,733, and the trading banks’ cash at £9,029,753 is higher by £169,425. The statement of assets and liabilities of the Reserve Bank as at the close of business on Monday, February 13, is as follows: Liabilities £ s. d. 1. Gen. Reserve Fund 1,500,000 0 0 2. Bank notes . 15,110,912 0 0 3. Demand liabilities—(a) State 3,504,716 14 2 (b) Banks 9,029,752 14 3 (c) Other 87,175 3 3 4. Time deposits 5. Liabilities in cur(1) Primary Products Market-

ing Dept 6,552,349 19 8 (2) For other purposes 12,050,000 0 0 (b) To other public authorities (c) Other rencies other than N.Z. currency 12,666 14 1 6. Other liabilities 301,805 13 6 £N.Z.29,547,028 19 3 Assets £ s. d. 7. Reserve—(a) Gold 2,801,791 0 0 *(b) Sterling exchange 4,164,499 8 9 (c) Gold exchange 8. Subsidiary coin . . 204,553 5 1 9 Discounts (a) Commercial and agricultural bills (b) Treasury and local body bills ... 10. Advances — (a) To the State or State undertakings— -11. Investments 3,652,138 18 8 12. Bank buildings 13. Other assets 121,696 7 1 £(N.Z.129,547,028 19 3 Proportion of reserve (No. 7 less No. 5) to notes and other demand liabili-

ties, 25.073 per cent., compared with 25.047 per cent, on February 6, and 68.438 per cent, on February 14, 1938. The statutory limit is 25 per cent. The reserve on Monday amounted to £6,953,624, compared with £6,865,775 on February 6, an increase of £87,849. On February 14. 1938, the bank’s reserve totalled £19,263,980. Sterling exchange, expressed in New Zealand currency, this weeks totals £4,164,499, as against £4,074,954 on February 6, an increase of £89,545. There are liabilities in currencies other than New Zealand currency this week amounting to £12,667 (an increase of £1696), thus reducing the net overseas assets of the Reserve Bank to £4,151,833. A year ago, the overseas assets amounted to £16,462,189.

Gold remains unchanged at £2,901,791. Subsidiary coin at £204,553 is down by £lO5. Advances to the Primary Products Marketing Department total £6,552,350, an increase of £77,918. Advances to the State for "other purposes" have risen to £12,050,000, an increase of £lOO,OOO. Investments show a further increase of £5754, the total now being £3,652,139. Other assets amount to £121,696, an increase of £18,196. A further decrease of £95,342 brings the note issue down to £15,110,912, but it is still £1,143,520 in excess of the total of £13,967,392 shown a year ago.

Demand liabilities to the State amount to £3,504,717, an increase of £266,733. The trading banks’ reserve balances have increased by another £169,425, and now total £9,029,753. Other demand liabilities amount to £87,175, a decrease of £19,709. Other liabilities total £301,806, a decrease of £31,494. The statement balances at £29,547,029, an increase of £291,309.

Movements in Sterling Exchange

The movements in the sterling exchange held by the Reserve Bank of New Zealand during the last few months and the decrease in the ratio percentage of reserve to notes and other demand liabilities, are shown in the following table:—

Sterling Reserve exchange. ratio. £ (N.Z.) percent. 1937. Dec. 27 . 16,992,748 70.323 1938. Aug. 29 .. 13,695,000 67.2 Sept. 5 .. 12,639,000 65.847 Sept. 12 .. 12,681,343 66.428 Sept. 19 .. 12,247,006 63.853 Sept. 26 .. 11,449,447 60.785 Oct. 3 .. 10,594,978 57,259 Oct. 10 9,900,233 57.903 Oct. 17 9,118,330 52.27 Oct. 24 .. 8,313,575 48.451 Oct. 31 7,707,697 46.09 Nov. 7 6,633,031 39.733 Nov. 14 5,662,977 36.825 Nov. 21 ... 5,029,137 33.723 Nov. 28 .. 4,828,302 32.685 ... 4,200,856 29.834 Dec. 12 4,572,031 30.333 ... 28.109 ... 4,678,233 27.882 1939. Jan. 2 ... 4,017,232 26.13 ... 3,933,851 25.526 ... 4,373,105 26.782 ... 4,395,525 26.695 ... 4,133,586 25.75 Feb. 6 ... 4,074,954 25.047 Feb. 13 4,164,499 25.073 The statutory minimum ot the reserve ratio is 25 oer cent.