EXCHANGE RATES

Evening Post, Volume CX, Issue 106, 1 November 1930, Page 9

EXCHANGE RATES

NEW ZEALAND AND AUSTRALIA

(Received Ist November, 11 a.m.) SYDNEY, This Day. Prom to-day to transfer money from Sydney to New Zealand will cost £>& 7s 6d per £100. So.that now to place £100 in New Zealand requires the payment of £104 7s 6d in Sydney. This is an addition of £2 10s to the previous Tate. Tor ordinary trade transactions the cost remains unaltered at .5, per cent. ' Tho alteration has been made with the, object of preventing Australians transferring money to New Zealand for the purpose of buying London exchange in New Zealand to the disadvantage of New Zealand importers; also to check tho sending of funds from Australia to New ' Zealand for investment.

- The revised rates, which operate as from to-day were set out in "The Post" last evening. The object of the alteration in the rates is to cheek, if not to prohibit, attempts made in. Australia to take advantage of the New Zealand rates on London, which are more favourable than those for Australia on London, and at the same time discourage the sending of moneys from Australia for investment in New Zealand. The chairman of the Associated Banks of' Now Zealand desires to reiterate that proceeds from New Zealand produce bills are definitely earmarked for the payment of imports by New Zealand. In other words, although the banks operating in Australia have agreed to pool proceeds from their produce bills to the amount of £36,000,000 upon which the Commonwealth Government has first call, all the- banks operating in New Zealand keep separate and apart from this pool the proceeds of New Zealand produce bills exclusively for New Zealand use. Somo idea of the high price which Australia is prepared to pay for money in London can be gathered from the fact that as high as £12 per cent, has recently been paid in open market in Melbourne for cover in London. The banks in Australia are strictly rationing their customers, but arc meeting their needs for London cover as far as thoy are able to do so.