Deficit Of £48M In Exchange

Press, Volume C, Issue 29657, 30 October 1961, Page 20

Deficit Of £48M In Exchange

(New Zealand Press Association) WELLINGTON, October 29. ' During the year ended. September, 1961, there was a deficit of £48,000,000 in New Zealand’s overseas exchange transactions, according to a review issued by the Reserve Bank yesterday. The deficit compares with a deficit of £6,200,000 last year.

The net overseas assets of the banking system fell from £100,200.000 on September 28. 1960. to £53.500,000 on September 27, 1961.

The principal movements in individual items compared with the year ended September. 1960. were as follows (detailed figures appear in table II): Export Receipts Butter. The tall of £15.000.000 in butter receipts is wholly through a fall in prices between the two years, the volume of sales having risen slightly. Cheese.— There was no significant movement in receipts for cheese during the year, the effect of higher prices on the London market at the end of 1959 being offset by increased sales to other markets during the last year. Meat.— The rise in meat receipts of £5.800.000 is probably caused by an acceleration of receipts during 1961, compared with 1960. since prices were generally lower than in the earlier year and there was no marked increase in the sales volume Wool.—Receipts for wool fell by £5.900.000 principally because of a lower level of prices compared with the previous year, there being little change in the volume of sales. Other Exports.— The fall of £4,200.000 in receipts from this group of commodities was mainly because of lower receipts for wood products, pulp and paper, hides and skins, sheepskins and pelts and milk products. The largest increase was in receipts for meat by-products. Total payments increased by £67,500.000 because of increases under all headings except Government debt interest. TABLE I Overseas exchange transactions. current and capita! account basis, years ended September, 1960-1961:

Keceipu t i£N.Z. million) 1 1960 1961 Exports 313.1 363.1 Other current recelpts 38. • 31.1 Total current receipts 342.7 324.1 Official capital 1 45.4 Private capital Total capital re99 8.8 ceipts 9.9 54.2 Total receipts .. 352.7 378.3 Parmenu Imports 264.0 315.9 Other current payments 74 6 79.8 Total current payments 338 5 395.8 Official capital .. 15 9 236 Private capital .. 4 4 70 Total capital payments 20.3 30.6 Total payments .. 358 8 426.4 Current account balance +4.2 -716 Capital account balance -10 3 4 23 6 Overall balance . 162 -48.0 TABLE 11 Receipts and payments of foreign exchang <£N.Z.000> year ended September. 1960, year ended September. 1961: — 1960 1961 Exports Butter 54.939 39.317 Cheese 19.052 19.101 Meat 75,069 80.708 Wool 108.306 102.386 Other 53.770 51.556 Total exports .. 313.135 293.070 Other receipts 39.522 85.264 Total receipts .. 352.637 378.333 Government Payments Debt interest .. 3,351 5.138 Imports 20.965 25.974 Other 27.451 34.126 Private Payments Imports 242.966 289.974 Other 62.064 71.143 Total payments 338.818 426.357 Balance —6.161 - 48.023