EXCHANGE DEALINGS.

Auckland Star, Volume LXV, Issue 139, 14 June 1934, Page 4

EXCHANGE DEALINGS.

UNOFFICIAL BUSINESS. BUYERS BECOMING CAUTIOUS. Uncertainty as to the probable action of the Government in regard to the "exchange rate, after the end of the export .season, has weakened the demand for unofficial exchange in the Dominion, an , ! transfers fire not made further forward than a fe«- days. Private money is still being offered freely in the main cities in varying slims, some of them of considerable size v but all at a price which is well under the oflicinl rate of 2."> per cent. Indications lately have pointed to (his minify being more difficult to place, as buyers arc not .prepared to the risk of the oltiiial rate beiiif! lowered, and arc buying cautiously only as much as they can absorb at once. The demand for immediate transactions is still strong, but money ottering weeks, or even days ahead, is treated ..with some suspicion. There is a general feeling among those; who win profit by the purchase of this exchange, that, some alteration to the official rate may be mad ,, nt the end of the export season, and. failing a precise date, they are proceeding with caution. Some of the money offering a little way ahead has been bought at hnlf the ruling official rate. Throughout New Zealand there is a great deal of this unofficial money ofl'erina. and many organisations have been taking advantage of it. The unofficial market for exchange in New Zealand continued freely for many months, and money in England was offered here nt a plica per rate thnn fie oflicinl rate from many parts of the world. These transactions have been strictly unofficial, and have been made without the knowledge of the banks, but tliev have been extensive, and even now when the market is more or less depressed, there is a great deal of business passing.