$234M deficit in exchange deals

Press, 30 June 1982, Page 10

$234M deficit in exchange deals

|i pa Wellington i Overseas exchange transaI tions for May resulted in a current account deficit of $234 million, compared with a deficit of S39M in May. 1981. according to figures released on Monday by the Reserve Bank.

Export receipts for the month were 9 per cent down on the May. 1981. figure, largely due to the exceptionally high export receipts recorded in May last year, and the weak market conditions now being experienced. Receipts for meat and dairy products were 21 per cent and 13 per cent lower respectively than in Mav. 1981.

Import payments, which were boosted by the inclusion of a payment for the Cook Strait ferry, rose 27 per cent compared with May. 1981. resulting in a deficit on trade transactions of S4BM. compared with a surplus of SI37M in the same month last vear.

Invisible receipts and payments rose 14 per cent and 9 per cent respectively, resulting in a deficit on invisible

transactions of SIB6M. S9M higher than the . deficit of SI76M recorded in the same month last vear.

No official borrowing took place in May. but loans totalling SI4SM were repaid resulting in a net outflow of SIS2M in the official capital account, including International Monetary Fund transactions.

In the three months endng May. 1982. a current account deficit of 5433 M was recorded. 5276 M greater than in the same period last year. Export receipts (up 2 per cent) showed little growth while import payments increased by 18 per cent. The result was a surplus on trade transactions of ?56M. compared with a surplus of S2B2M in the corresponding period a year earlier. The deficit on invisible transactions deteriorated by SSOM compared with the three months ended May. 1981, to stand at S4B9M.

Export receipts for the year ending May, 1982. totalled $6678M, an increase of 10 per cent over the

previous year, while import payments increased by 17 per cent to 56192 M. The resultant surplus on trade transactions was S4B6M compared with a surplus of SBO9M in the yeard ending May. 1981. Invisible receipts of 51636 M and payments of $3471M grew by 29 per cent and 22 per cent respectively over the previous year, resulting in a further deterioration in the deficit on invisible transactions to $1835M.

Government borrowings totalled 51486 M and other official receipts of $622M were recorded during the year. Official capital and Government debt repayments amounted to S9SOM (including I.M.F. transactions) leading to a net inflow on the official capital account of $1159M. The private capital account recorded a net inflow of S2B7M. Official overseas reserves at the end of May. 1982. stood at $939M. an increase of SII2M over the May. 1981. position.