Limit On Net Domestic Assets No Hardship

Press, Volume CVIII, Issue 31773, 2 September 1968, Page 16

Limit On Net Domestic Assets No Hardship

When the concept of net domestic assets was outlined in the letter of intent sent by the Minister of Finance (Mr Muldoon) to the International Monetary Fund before devaluation last year, it was felt that New Zealand would be hard put to keep within the limits outlined in the letter.

However, devaluation and the resulting improvement in the balance of payments have allowed New Zealand to keep well within the limits imposed. This is illustrated by the graph taken from the latest ! review of the New Zealand

Institute of Economic Research, which shows the position to the end of June. Since then, the position has been much the same. The

show how much spending is occurring within a country. Briefly, net domestic assets are the surplus of borrowings from the Reserve Bank over

maximum limit of s2oom from May 30 to August 28 has imposed no hardships on the Government to keep the country’s internal spending down. However, if the balance of payments should worsen, then the limits may be more difficult to observe. Net domestic assets Is a concept used by the International Monetary Fund to

i lendings to the bank. These . “customers” mostly are the Government, trading banks, and marketing authorities. METALS <N Z PA.-Reuter—Copyright)

LONDON, Buyers a ton August 30. Sellers a ton Spot £ 6. d. £ s d Copper . . 458 10 0 459 0 0 Tin . 1295 0 0 1297 0 0 Lead . 104 15 0 105 0 0 Zinc . 112 0 0 112 5 0