N.Z., Aust. assuming big forex role

Press, 22 July 1986, Page 37

N.Z., Aust. assuming big forex role

NZPA-AAP Sydney Australia and New Zealand are fast assuming a big role in the world’s foreign exchange markets. In the time from the New York close and Tokyo’s start, Wellington and Sydney-Melbourne have seen increased business as Tokyo brokers place orders before the official Tokyo opening.

A Financial Times survey of this year estimated a daily New York foreign exchange turnover of SUS3S billion and Tokyo at SUSB billion. These compare with a Sydney turnover of about SUSIO billion. Mr Geoff Barlow, chief dealer in foreign exchange with Citißank, Ltd, said trading by large

Japanese corporates in the New Zealand and Australian markets before the opening of other Asian centres had been a significant development. Australian daily trading volume has grown to its level of sAustls billion, three times the volume of January, 1985, and compared with just over sAustl billion when the dollar was floated in December, 1983. In international finance world centres, up to SUSISO billion turn over daily.

Major centres’ daily volumes include London’s SUS 49 billion, Zurich’s SUS2O billion, and Frankfurt’s SUSI 7 billion. Trading in the Australian time zone commences at 0830 AEST (6.30 a.m. N.Z. time) with

New Zealand coming in two hours earlier with an official Tokyo start of 1000 AEST (8 a.m. N.Z. time).

Mr Barlow said on average Citibank was dealing between SUSIOO million and SUS2OO million against the Japanese yen. It is apparent the business being carried out is for Japanese corporate requirements with interbank trading in the background, he said.

The interest in the New Zealand and Australian east coast time zone has also been increased in recent months with the increased volatility of the U.S. dollar.

“There is a general awareness that this time zone is becoming more important to look at,” Mr Barlow said.