Exchange Rate With Indonesia Confused

Press, Volume CII, Issue 30156, 13 June 1963, Page 14

Exchange Rate With Indonesia Confused

(New Zetland Press Association)

WELLINGTON, June 12

The Government was studying the implications of a recent change in the official exchange rate of Indonesian and New Zealand currency, the Prime Minister (Mr Holyoake) said tonight.

He was commenting on reports of confusion over exchange rates causing discontent among New Zealanders teaching under the Colombo Plan in Indonesia.

Some teachers are believed to have alleged that the teaching positions advertised for Indonesia were expressed in New Zealand currency but they were being paid at an "archaic” rate of 125 rupiahs to £N.Z.I

They are reported to be asking why they cannot be paid at a rate of 503 rupiahs to £IN.Z., the official exchange rate for foreign persons in the country.

Mr Holyoake said tonight it was essential that the Government treat fairly not only New Zealand technical staff overseas but also the New Zealand taxpayer. “Although there is a free

and black market rate of about 4000 rupiahs to the pound, the government is of course bound to deal at the official rate,” he said. Latest reports indicated that the official rupiah rate was being increased from 125 to 875 rupiahs to £IN Z.

Mr Holyoake said the implication of this recent channe was under study by Government and it was hoped the matter would soon be resolved.