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AFRICAN TRADE PROBLEMS.

DIFFICULTIES OVER FINANCE. CAPETOWN", February 12. Tile question of rates of exchange has become a pressing matter in South Africa, owing to the diminution of the gold reserves and the fact that it now costs 27/ to bring back a sovereign to South Africa. Recently the banks stopped credits, which resulted in bringing almost to a standstill the produce export trades. The banks now announce that instead of about par, which hitherto has been ruling, the buying rate on London will be fixed at rates ranping from 4J ptr cent for telegraph transfer, to 7} per cent at 120 days' sipht. The reason given is that the banks are obliged to import gold coin at grent cost. They appeal to the public to refrain from exchange ODerations outside of the banks, to enable the latter to continue financing the trade of the 'country.—(A. and X.Z. and Rcuter.)

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/AS19200213.2.50

Bibliographic details

Auckland Star, Volume LI, Issue 38, 13 February 1920, Page 5

Word Count
150

AFRICAN TRADE PROBLEMS. Auckland Star, Volume LI, Issue 38, 13 February 1920, Page 5

AFRICAN TRADE PROBLEMS. Auckland Star, Volume LI, Issue 38, 13 February 1920, Page 5