Bank Suggests Building Up Overseas Reserves

Press, Volume CII, Issue 30316, 17 December 1963, Page 23

Bank Suggests Building Up Overseas Reserves

While export prices remain high some effort should be made to build up New Zealand overseas reserves, says the Commercial Bank of Australia in its latest economic review. The bank says the outlook for exports is “most encouraging.’ ’ Currently wool prices are well above last year’s and could give a welcome lift to the Dominion’s overseas reserves. Following poor seasonal conditions in the United Kingdom, meat and dairy production are at lower levels there and in consequence the market prospects for these products from New Zealand are sound. Against this private imports for the first 10 months of 1963 were £ 229.1 m, but the Minister of Customs has confirmed that the value of import licences for the licensing year to June, 1964. would be limited to £2som, the bank says. If this is achieved, imports

for the next seven months will average about £2om a month compared with the recent rate of £2sm. With the current business activity at a relatively high level it is questionable whether a sharp fall in the rate of importing could be effected, even taking into account currently higher stock levels, without strain, particularly in the manufacturing sector. Allowing for some slackening in the rate of importing in the third and fourth quarters of the licensing year, also possible reductions in stock levels, it seems on present outlook that a private imports bill of less than £270-275m can only be assured by adjustment to current policies, the bank adds.

Exchange Rates The Canadian dollar lost ground to the £ last week while the United States dollar was almost steady and most other currencies unchanged. Altered telegraphic transfer exchange rates advised yesterday by the Bank of New South Wales: N.Z. on— New York: buying 2.7922 dollars (against 2.7921 dollars the week before); selling, 2.7606 dollars 2.7605). Canada: 3.0147 dollars (3.0112); 2.9702 dollars (2.9727). Belgium: 139.90 francs (140.00); 136.80 francs (same). France: 13.76 francs (same); 13.46 francs (13.47). Austria: 72.52 schillings (72.53); 70.97 schillings (70.98). Norway: 20.09 crowns (20.10); crowns (19.67). Sweden: 14 59 crowns (same); 14.28 crowns (14.27). Hong Kong: 16.127 dollars (same); 15.657 (15.690).