FORWARD SALES

Waikato Times, Volume 125, Issue 20906, 11 September 1939, Page 9

FORWARD SALES

SUPPLY OF BTERLINO ARRANGEMENT EXTENDED (By Telegraph.—Press Association) WELLINGTON, Sunday The Reserve Bank announces that the arrangement referred to in its statement to the press on August 31 regarding forward exchange facilities is being extended. The position now is that trading banks are authorised to enter into forward sterling exchange arrangements in respect of payments for licensed imports provided that the relative goods have either arrived in New Zealand or been shipped and that the importer has, in respect of the transaction, (a) paid into an irrevocable deposit account at a trading bank in New Zealand for eventual remittance by telegraphic transfer or otherwise or to cover payment of the relative draft at or before maturity, or (b) established with his banker an irrevocable letter of credit, or (c) paid a sight draft, or (d) accepted a usance draft, in which case the bank may stipulate that the arrangement is conditional on the draft being paid in due course. The facilities mentioned above will be available throughout the Dominion in the course of a few days. The Reserve Bank announced at the end of last month a scheme under which the trading banks were to be authorised, on receiving payment in New Zealand currency at the normal due date in respect of licensed imports from any country for the period ending June 30,. 1940, to sell forward, at the official rate ruling on such due date, sterling to cover the corresponding amounts of New Zealand currency for which authorities for deferred remittance had been given. provision was also being made to enable licence-holders, by arranget ment with their bankers, to make pensating adjustments as regards priority of remittance between any tariff item and any other tariff item in the same category.