RESTRICTION ON EXCHANGE

Press, Volume CVI, Issue 31327, 25 March 1967, Page 1

RESTRICTION ON EXCHANGE

Remittances By Emigrants

(New Zealand Press Association) WELLINGTON, March 24. The Minister of Finance (Mr Muldoon) announced today that exchange-control policies administered by the Reserve Bank were to be “tightened up” for certain types of remittances.

He said that the measures were envisaged as temporary and were aimed at* the short-term conservation of exchange. Emigrants’ transfers to sterling area countries—previously allowed without limitation—will be limited to £5OOO a family on departure. The balance will be transferable in instalments over four years. Mr Muldoon said a higher initial figure may be approved in cases where there are special circumstances. Legacy Transfers The transfer of funds due to non-residents of New Zealand by way of legacies from New Zealand estates previously unlimted—will now be

limited to an initial transfer of £lOOO. The balance will be transferable over a period not exceeding four years. The initial sum may be larger in special circumstances. The Minister said that in addition to these amendments certain other classes of remittances were being examined more rigorously by the Reserve Bank. Firms’ Expenses These included the overseas expenses of New Zealand firms and organisations, personal remittances such as gifts to people overseas, and allowances for business travel. “Obviously there cannot be a drastic reduction in such payments, but the bank will endeavour to achieve savings of exchange wherever reasonably possible,” said Mr MulIdoon.