RESERVE BANK

Press, Volume CV, Issue 31027, 5 April 1966, Page 21

RESERVE BANK

Effect Of Tax Demands Demands for money for the payment of taxes are still the cause of the major changes in the statement of the Reserve Bank for the week to March 30. State deposits have risen a further £13.6m to £44.3m, whereas advances to the Government declined to £156.883 from £177.223 the previous week. The bank relieved the short-term money market of another £l.Bm in Government securities. This item now stands at £41.2m, the highest since March last year. Other changes on the liabilities side are insignificant. On the assets side shortterm overseas assets are up £2.5m to £24.8m. Marketing accounts overdrafts are down slightly, from £60.7m to £59.4m. Other advances, mainly to trading banks and those reflecting the bank’s function as the lender of last resort, rose by £lo.lm to £31.4m. Gold Holding The gold holding is now £117,781. Last week this decreased from £132,150, a fall of £14,369. Reserve Bank officers said that this sale of gold, made in the tidying up at the end of the financial year, is part payment of the increased subscription to the International Monetary Fund. It would reduce the call on overseas funds in buying gold abroad without severely depleting current gold holdings. Maximum New Zealand drawing rights with the I.M.F. were expanded from £55.8m to £70.6m under arrangements completed last year. To cover this New Zealand is required to subscribe an extra £2.9m in gold and deposit £B.sm in non-negotiable non-interest-bearing securities with the Reserve Bank.