COMMERCIAL N.Z. dollar now hard currency

Press, Volume CXIII, Issue 33382, 14 November 1973, Page 20

COMMERCIAL N.Z. dollar now hard currency

(Bi; R. O. DEW. a staff reporter, who was a guest on Air New Zealand’s inaugural DC 10 flight to Singapore.) The New Zealand dollar is now one of the most sought after trading currencies in South-East Asia, if money transactions in Singapore’s famous Change Alley can be taken as a reliable guide.

The Indian Moslem moneychangers who flank the entrances of this quarter-mile long alley of shops and stalls have no hesitation in buying both New Zealand and Australian dollars at prices not far short of the official exchange rate. However, it is the New Zealand currency which appears to be in the greatest demand. This is partly because of the supply and demand. The Australian dollar has been an acceptable trading currency for considerably longer, and .there is also a larger source of supply for these. Nevertheless, it is also a strong indication of the present strength of the New Zealand dollar. It is a far cry from the situation when I visited Singapore 12 years ago. Then it was virtually impossible to exchange New Zealand money for any other currency, and Australian money was almost as difficult to sell. In those days, sterling was the most acceptable currency. It could be readily exchanged for Singapore dollars at a satisfactory rate, and was acceptable as a trading currency in the shops. DECLINE OF STERLING The decline in the strength of sterling since then, and, more recently, the Government’s decision to allow overseas banks to trade New Zealand currency, has caused great changes in the financial field. Not even the United States dollar is as mighty as it once was. In Singapore, at least, there appears to be a surplus of them, and this is the currency which the money changers try hardest to sell to tourists. Change Alley’s money changers now prefer to buy New Zealand money rather than sell it. An attempt to purchase a large sum of New Zealand dollars with Singapore currency last week failed. Instead, I had to be

’ i satisfied with SNZS at a cost -I of $51N16.50. A few days !! later, I was able to improve >'on this slightly, buving SNZS ; for SSIN 16.00. ■ On these exchange rates it t is difficult to appreciate that J only a few years ago New . Zealand dollars could be purchased in Change Alley for r something like half their actual value. The days have f gone when the intrepid cur- , rency smuggler could take j the chance of a quick profit . on currency dealings at the risk of a substantial fine. New ! Zealand currency could not then be brought back into the j country through official chan- . nels except in tiny amounts. , The restrictions have now been eased substantially, and ( the money changers of ' Change Alley have not been slow to realise that New ZeaI land money is “good.” and I I rather more than the worth'iless paper it once was on the hworld market. BETTER IMAGE I This changed attitude has , had a number of beneficial effects. With shops prepared ' to accept the New Zealand ' dollar, matters are now much 1 simpler for travellers. A far better image of the New Zealand economy has been created, too, for persons seeki ing to change their currency , on the way to the country. I managed to sell SNZS - for $51N15.75. Then, to obtain ■ a comparison, I sold SAUSTS. [ This brought $51N15.50. I The official exchange rate I for Singapore and New Zea- ; land dollars was 3.526 to 1. In spite of the considerable ' demand for New Zealand : dollars in Singapore, most ’ New Zealand travellers are still equipped with travellers’ cheques in Australian cur- , rency. These are quite accept- ’ able to shopkeepers and are easily converted to Singapore ’ dollars. But the time appears to have been reached when ' New Zealanders can travel to South-East Asia with travel- : lers’ cheques in their own : currency.