RESERVE BANK

Dominion, Volume 32, Issue 99, 20 January 1939, Page 12

RESERVE BANK

Increase In Sterling Exchange

RESERVE RATIO IMPROVES Reduction In Note Issue 'Phe sterling exchange funds of the Reserve Bank of New Zealand as at Monday totalled £4,373,105 in New Zealand ctirleuey, as compared with £3.J3d.-jl on January 9, an increase oi £4.»9,Z0 l. Jhe proportion of the banks reserve, to note-s and other demand liabilities improved during the week from 25.526 per cent, to 26.782 per cent. ■/ Other features of the banks statement are a further decrease of £297,159 in the note issue, an increase of £180,554 in'State deposits, a large increase of £631,4.16 in trading banks’ cash, a decrease ot £139,796 in dairy produce advances ami an increase of £140.001) in advances to the State for other purposes. • The statement of assets and liabilities of the Reserve Bank ns nt Monday, January 16, is a« follows: — LIABILITIES.

£ s. d. 1. General reserve fund 1.500.0(H) 0 02. Bank notes 15,830.003 10 0 if. Demand liabilities — (n) State 2.801.14,> 2 4 ' (b) Banks t<,()12,5()7 ™ 2 (c) Other 130,961 6 8 4. Time deposits .... 5. Liabilities in currencies other than N.Z. currency ... . 2.968 19 3 6. Other liabilities .. 237,432 011 £(N.Z.)28,518.378 17 5 ASSETS. 7. Reserve— £ «• (a) Gold 2,801,791 0 0 °(b) Sterling exchange 4,373,105 2 o (c) Gohl exchange ■ — ~ ~ 8. Subsidiary Coin . . 192,903 < 6 9. Discounts — (a) Commercial and Agricultural Bills . • — (b) Treasury and Local BodyBills 500,000 0 0 10. Advances — (a) To the State or State undertakings— (i) PrimaryProducts Marketing Dept 6.028,505 11 10 (ii) For other purposes .. 10,970,000 (b) To other Public Authorities — — — (c) Other '. — 11. Investments .... 3,603,300 6 2 12. Bank buildings ... — 13. Other assets 48,773 9 . 6 ♦Expressed in N.Z. currency. £28,518,378 17 5

Proportion of reserve (No. 7 leas No. 5) to-notes and othel demand liabilities, 26.782 per.cent., .compared with 25.526 ■per cent, on January 9, and 69.963 per cent, on January 17, 1938. The statutory limit is 2-5 "per cent. The reserve on Monday amounted to £7,171,927, as compared with £6,734,499 on January 9, an increase of £437,428. On January 17, 1938, the reserve amounted to £19.484,893. Sterling exchange expressed in New Zealand currency totals £4,373,105, as compared with £3.933.851 on January 9, an increase of £439,254. Against this, liabilities in currencies other than New Zealand currency, total £2969, compared with £1143 on January’ 9, an increase of £1826. A year ago the banks’ sterling funds totalled £16,683,102. Gold still stands at £2,801,791. Subsidiary coin at £192.903, shows a decrease of £1497.

Treasury ibills discounted, remain unchanged at £500,000. Advances to the Primary Products Marketing Department total £6,028,505, a decrease of £139,796. xVlvances to the State for “other purposes" total £10,970,600, an increase of £140,000. Investments at .£3,603,300; rfiow jio change. Other assets amount to £48,773, a decrease of £18.771. The note issue at £15,830.063. shows a further contraction of £297,159, but. is still £1,297,558 in excess of the total of £14.532,505 on January IT, 1938. , Demand liabilities to the State tota, £2,801,145, an increase of £180,554. An increase of £631,496 brings the total of the trading banks' reserve balances up to £8,012,808. Other demand liabilities amount to £133,961, a decrease of £119,T 27. Other liabilities to-tal £237,432, an increase Of £22,200. r„n-ioo-n The statement balances at £28,018.3<9, an increase of £419,190. Movements In Sterling Exchange. The movements in the sterling exchange held by the Reserve Bank of New Zealand during the last tew months and the decrease in the ratio percentage ot reserve to notes and other demand liabilities, are shown in the following tabla:

The statutory minimum of the reserve ratio is 25 per cent.

London Wool Sales Firmer By Telegraph. — Press Assn.— Copyright. LONDON, January 18. Offerings at the wool sales today were 8353 bales, including 2920 bales New Zealand, and 7525 were sold. A very good wdeetiult met with increased competition, resulting in lull to firmer rates on opening prices being realized. New Zealand greasy hall bred, Crosland,” sold at lOd. to 10-Jd ; greasy ero.es bred ‘’Crosland, at. 9Jd. to Ji|d.

Murray Roberts and Co.. Ltd., have received a cable message from their London agents giving the, following comparison ot prices:— ' , . ~, . , Opening Closing i rales. rates. Jan. Nov. d. d.

.11)37. Doc. 27 Sterling exchange. £ (N.Z.) , 16,992,748 Deserve ratio per cent. 70.323 1038 Aug 29 .. .. 13,095,000 67.2 .. 12,639,000 65.847 .. 12,681,343 66.428 Sippt. 19 . .. 12,247,006 63.853 Sept. 20 . OCt B a . a .. 11,449,447 .. 10,594.978 60.785 57.259 Oct 10 .. .. 9,900,233 57.903 Oct 17 .. .. 9,118,330 52.27 Oct 24 .. .. 8,313,575 48.451 Qt>t 31 a a .. 7,707,697 46.09 .. 6,633,031 39.733\ 36.825 N'ov 14 .. .. 5.602.977 NOV 21 . a .. 5,029,137 33.723 . 4,828.302 32.685 4.200.856 29.834 Dec 12 ... .. 4,572,031 30.333 1 tec. 19 .. • Dec 2(> ... 4.368.095 . 4.678.233 28.109 27 882 r>ip 2 . 4,017.232 26.13 3 933.851 25.526 Jan. 1G .. .. 4,373,105 26.782

N Z. Merino — 60/64’s yldg. -IS p.c. 1.1 11J IlnJfbred - | all's yldg. 01 P.c. ■ ■ Hi 12 Superfine Cru.-abred — 5<)’k yldg. <0 !>•<-’• • • L'ine Crossbred — 10.) 11 48/50’s mixed prep. and card. yldg. 72 10f ioi 46/48's mixed prep. and card. yldg. 74 p.e 10.1 10} Medium Crossbresl — 41/40’s prep. yldg. 10] 103 p e 44/46's card. yldg. 74 p.c 111 104 Course Crossbred — 40/44’8 yldg. 75 p.c. 11? .104 Low Crossbred— 36/4O’s yldg. 76 p.c. — —