"BLACK" MARKET.

Auckland Star, Volume LXX, Issue 190, 14 August 1939, Page 8

"BLACK" MARKET.

OVERSEAS FUNDS.

PREMIUM OF 12 PER CENT.

IMPORTERS PAY IT.

(By Telegraph.—Press Association.)

CHRISTCHURCH, this day.

Xew Zealanders with overseas funds

or incomes at their disposal are receiving from 5 per cent to 12 per cent more for their money by selling it at a premium to local brokers, who in turn pass on the funds to importers. There is evidence that this so-called "'black market is stiffening. Rates at the beginning of the year were about 5 per cent over and abort tiie New Zealand standard exchange of I 25 per cent, but since then the premium lias risen to at least 12 per cent in some cases. One city firm which wanted £200 sterling to meet an K Mulish order had to pay £280 in Xew Zealand currency for the accommodation rather thau see their business suffer. The principals of the firm were glad to pay the extra amount as more and more people have discovered this way of making their overseas incomes larger. The exchange of foreign for Xew Zealand funds has grown to large proportions. The commonest rate for small amounts ranging up to £100 English is £132 10/ in Xew Zealand currency. ' Importers wanting funds additional to those which they have been able to get from the banks have been quick to grasp this opportunitv.