MORE FACILITIES.

Auckland Star, Volume LXX, Issue 214, 11 September 1939, Page 3

MORE FACILITIES.

FORWARD EXCHANGE.

AUTHORITY FOR BANKS

REMOVING DIFFICULTIES. (By Telegraph—Press Association.) A\ KLLIXGTOX. Sunday. I lie 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 i«s that trading banks are authorised to enter into forward sterling exchange arrangements in l opect ol payments for licensed imports provided that the relative goods have either arrived in Xew Zealand or been shipped and that the importer has, in re-poet of the transaction, (a) paid into an irrevocable deposit account at a finding bank in Xew 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 i't) paid a sight draft, fir (d) accepted a usance draft, in which case the bankmay stipulate that the arrangement is conditional on the draft being paid in duo course.

Ihe facilities mentioned above will bo available throughout the Dominion in the course of » few da vs.

Tile Ivosorvo 15a uk recently announced a scheme designed to remove as far as praet ica hie certain difficulties regarding financing ~f imports. The trading banks were to he authorised, on receiving payment in Xtuv Xea la ml currency at the normal due date in respect of licensed imports from any country for the period ending June :i(i. 1040. 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 (lefel', eil remittance had heen pivon.

As exchange authorities had already been issued specifying the months in which the remittances could he assured, importers would now he ahle to make arrangements fixinp tile cost to them of obtaining sterling in respect «f such deferred remittances. Provision was also he iup made to enable licen-e----holders, by arrangement with their hankers, to nmka compensating adjustments as repaid* priority of remittance hot ween any tarifT item and anv other tariff item in tho same cateporv. subject to certain limitations as to'adjustments hetween one country and another.