RESERVE BANK

Wanganui Chronicle, Volume 83, Issue 47, 25 February 1939, Page 15

RESERVE BANK

STERLING EXCHANGE i INCREASES MORE STATE BORROWING j i RESERVE RATIO 25.378 PER CENT, | The sterling exchange funds of the Reserve Bank of New Zealand on Monday totalled £N.Z.4,523,031, an increase last week of £N.Z.358,531. The bank’s net overseas fund amount to £N.Z.4,488,379. The proportion of reserve to notes and other demand liabilities is fractionally higher at 25.378 per cent. Advances to the Primary Products Marketing Department have risen by a further £164,185, and now total £6,716,535. Advances to the State for “other purposes” have increased by £450,000 to the high level of £12,500,000. The note issue at £14,888,397 is lower by £222,514. State deposits at £3,654,631 show an increase of £149,914, and the trading banks’ cash reserves at £10,103,137 are higher by £1,073,384. The statement of assets and liabilities of the Reserve Bank as at the close of business on Monday, February 20, is as follows: Liabilities £ s. d. 1. Gen. Reserve Fund 1,500,000 0 0 2. Bank notes 14,888,397 10 0 3. Demand liabilitiesla) State 3,654,631 6 1 (b) Banks 10,103,136 12 8 (c) Other 80,210 7 1 4. Time deposits 5. Liabilities in currencies other than N.Z. currency 34,652 5 3 6. Other liabilities 274,116 2 3 £N.Z.30,535,144 3 4 Assets £ s. d. 7. Reserve—(a) Gold 2,801,791 0 0 *(b) Sterling exchange 4,523,030 19 1 (c) Gold. exchange 8. Subsidiary coin .. .. 203,727 611 9 Discounts (a) Commercial and agricultural bills (b> Treasury and local body bills ... 10. Advances—(a) To the State' or Stale undertakings— (l) Primary Products Marketing Dept 6,716,535 8 3 (2> For other purposes 12,500,000 0 0 (b) To other public authorities (c) Other 11. Investments 3,652,138 18 8 12. Bank buildings 13. Other assets 137,920 10 5 £N.Z.30,535,144 3 4 ‘Expressed in New Zealand currencyproportion of reserve (No. 7 less No. 5) to notes and other demand liabilities, 25.378 per cent., compared with 25.073 per cent, on February 13 and 68.486 per cent, on February 14. 1938.

The reserve on Monday amounted to £7,290,170, compared with £6,953,624 on February 13, an increase of £336,546. On February 21, 1938, the reserve stood at £19,474,395.

Sterling exchange, expressed in New Zealand currency, this week amounts to £4,523,031, compared with £4,164,499 on February 13, an increase of £358,531. There are liabilities In currencies other than New Zealand currency this week of £34,652 (an increase of £21,985), thus reducing the net overseas assets of the Reserve Bank to £4,488,379. A year ago the overseas assets of the bank amounted to £16,672,604. Gold remains unchanged at £2,801,791. Subsidiary coin at £203,727 shows a decrease of £826. Advances to the Primary Products Marketing Department total £6,716,535, an increase of £164,185. Advances to the State for “other purposes” have risen to the high level of £12,500,000. an increase during the week of £450,000.

Investments are unchanged at £3,652,139. Other assets at £137,920 show an increase of £16,224. A further seasonal decrease of £222.514 brings the note issue down to £14,888,397, at which figure it is still £1,098.642 in excess of the total of £13,789,755, on February 21, 1938. Demand liabilities to the State at £3,654.631 show a further increase of £149,914. The trading banks’ reserve balances now total £10,103,1.37, an increase of £1,073,384. Other demand liabilities amount to £80.210, a decrease of £6965. Other liabilities at £274,116 show a decrease of £27,689. The statement balances nt £30,535,144, an increase of £988,115.