Invisible Transactions Again Bring Deficit

Press, Volume CVII, Issue 31407, 28 June 1967, Page 3

Invisible Transactions Again Bring Deficit

(New Zealand Press Association)

WELLINGTON, June 27.

The Reserve Bank’s latest statement of overseas exchange transactions released today says that during the first 11 months of the current import licensing year export receipts exceeded import payments by £16.2 million, but this was more than off-set by a net deficit of £BO.B million on invisible transactions.

Thus, on current account there was a deficit of £64.6 million. On capital account there was a surplus of £58.2 million and the over-all balance was a deficit of £6.4 million. Compared with the same period in 1965-66 export receipts fell by £17.4 million to £341.3 million. There was a fall of £26.8 million in receipts from wool and smaller falls in receipts from meat (-£5.7 million) and by-pro-ducts of the meat industry (-£1.2 million).

These decreases were partially off-set by rises in receipts from dairy products (+£13.4 million), forest products (+£o.l million), other primary products (+£l.9 million), and miscellaneous items (+£o.9 million. Import payments fell by £18.5 million to £325.1 million (Government -£1.2 million and private -£17.3 million). The surplus of £16.2 million on trade transactions compared with one of £15.1 million in the corresponding period of last year. However, the invisible deficit rose by £10.9 million to £BO.B million and the current acount deficit of £64.6 million was £9.8 million higher than the deficit in July-May, 196566. During the first five months of 1967 both export receipts and import payments were at a lower level than for the same period last year. Export receipts fell by £26.0 million to £157.7 million. The depressed wool market is reflected in wool receipts, which fell by £27.4 million to £37.8 million.

RECEIPTS Exports Other Current .. 1966 £m 393.4 42.3 1967 £m 384.1 46.3 Total Current 435.7 430.4 Capital 90.1 115.2 — Total 525.8 545.6 — — PAYMENTS Imports— Government . 37.4 36.0 Private 339.9 322.4 Invisibles 119.5 135.9 — Total Current 494.8 494.3 Capital 53.8 57.9 ■ —— - ■■ 1. 1 ■ ■ Total 548.6 552.3 - ■ - — BALANCES Current Account— Trade + 18.1 ’ +25.7 Invisible -77.2 -89.7 — —— Total -59.1 -64.0 Capital i.. + 36.3 + 57.3 ———— ... ■ ■ ■ Total = 22.8 -6.7 ■■ Export receipts vere made up as follows: — 1966 1967 £m £m Butter . 53.7 59.5 Cheese . 23.5 27.8 Other Dairy ... 22.8 27.5 Meat 105.8 103.0 Wool 119.9 96.0 Other 67.6 70.3 Total 393.4 384.1