EXCHANGE RATE

Press, Volume LXXXV, Issue 25903, 8 September 1949, Page 6

EXCHANGE RATE

AUSTRALIAN EXPORTERS’

PRECAUTIONS i (N.Z. Press Association—Copyright) SYDNEY. Sept. 7. The president of the Australian Exporters’ Federation, Mr A. Sparks, said that most Australian exporters had protected themselves against any change in the rate of exchange between Australia and the United Kingdom. He was commenting on overseas messages to the effect that traders were taking precautions against the devaluation of sterling. A message from Auckland said that exporters of meat, hides, tallow, and wool were quoting prices to overseas buyers "subject to no alteration in sterling exchange.” A message from the Hague said that British tin producers were alleged to be underselling tin on contracts of one to three months to United States’ importers. A leading Dutch tin authority said that British producers, fearing sterling devalu- j ation, were making short-term contracts I with United States’ importers at a lower price. Commenting that Australian exporters made their quotations f.0.b., Australia, or in sterling, Mr Sparks said: "If the quote is f.0.b., Australia, the Australian exporters would not be affected by any change in the exchange rate. If he quotes in sterling, he can protect himself by buying exchange forward through trading banks or the Commonwealth Bank. Exchange of £lOO can be bought forward three months for 2s 6d. In th J s way banks would bear the loss caused by any change in the exchange rate." RESERVE BANK RETURN The Reserve Bank return for the week ended August 31. with the previous week’s figures in parenthesis, is as follows: Liabilities.—General reserve. £1.500.000 (same); bank notes, £51,030,585 (£sl* ,814.842): demand liabilities: State. £7,412,673 (£7,010,818): banks. £79.898,471 ( £80.388,228); other. £279,378 (£310,5171; liabilities in currencies other than New Zealand currency, £65,917 (£9050): other liabilities, £3,623,995 (£3,623.855). Total. ■ c . iary coin. £192.691 (£194.357); advances, to State marketing organisations. £4,258,916 (£3.315,843); for other purposes, £31.000/100 (same); other advances. £5,076,564 (£5.070,043); investment-. £48,09-1.280 (same): other assets. £812.554 (£684,780). Total. £ (N.Z.) 143.811.019 (£143.657.320). Proportion of reserve to notes and other demand liabilities. 39.178 per cent ("9.912 per cent.).