RESERVE BANK

Dominion, Volume 33, Issue 98, 19 January 1940, Page 12

RESERVE BANK

Position Of State Advances STERLING FUNDS STEADY Further Decline In Note Issue Little change is shown this week in the sterling exchange funds of the Reserve Bank of New Zealand, which are £_rofi higher at £6.805,4’2:1. Dairy advances total £3,586,834, an increase ot £1.)t),034, but advances to the State lor other purposes are lower by £145,000, and now amount to £20.010,000. A further decrease of £181.2'7'5_ brings the note issue down to £1'8,7212,254). The bank's .statement ol assets and liabilities as at the close of business on 'Monday, January I's, is as follows: LIABILITIES.

Proportion of reserve (No. i less No. 5) to notes and other demand linbihties, 27.030 per cent., compared with 27.640 per cent, on January 8. The reserve on Monday amounted to £9,059,207, compared with £9.053.828 on January 8, an increase of £5439. . A year ago the reserve totalled £7,171,927. On January 17. 1938, the reserve amounted to £19.484,893. . S terling exchange in nils on Monday amounted to £6,865,421, compared with £6.862,085 on January 8, an increase of £2736. Liabilities in currencies other than New Zealand currency on 'Monday were £7993 (a decrease of £2703), thus making the bank’s net oversea_s assets £6,857,428, compared' with £6,851,989 on January 8, an increase of £5439. A year ago the bank’s net overseas assets amounted to while on January 17, 1938, they totalled £16,683,102. Gold remains unchanged at £2,801,839. Subsidiary coin totals £161,859, an increase of £3102, Advances to the State Marketing Department on Monday totalled £3,586.834, compared with £3,390.299 on January 8, an increase of £190,534. A ,vear_ ago these advances amounted to £6,028,506. Advances to the State for other purposes show a decrease for the first time in several weeks. On Monday they totalled £20,610.000, compared with the record high level of £20,725,000 on January 8, a decrease of £115,000. A year ago these advances stood at £10,970.000. Investments, at £3.042,181 show a decrease of £53.512. Other assets total £153,457. an increase of £11,957. A further reduction of £181,275 brings the total of the note issue down to £18,722,259. This is £2,892,196 in excess Lf the total of £15,830,063 a year ago.

Demand liabilities to the State total £3,064,921, compared with £2,938,038 on January 8, an increase of £126.883. The trading banks' reserve balances amount to £12.991.241, an increase of £33.107. Other demand liabilities at £180,698 show an increase of £61,307. Other liabilities total £754,479. an increase of £2500. The statement balances at £37,221,591, an increase of £39,819.

Movements in Sterling Exchange.

The movements iu the sterling exchange held by the Reserve Bank of New Zealand during the liis’t few mouths and iu the ratio percentage of reserve to notes and other demand liabilities, are shown iu the following table; — Sterling Reserve

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

£ S. d. 1 General Kes. Fund 1.500,000 0 0 2. Bank notes . .. • 18,722,251) 0 0 3. Demand liabilities— (a) State 3,064.920 13 6 <b) Banks .... 12,901,241 1 4 (e) Other 180,69 4 17 6 .4 Time deposits .... 5. Liabilities in currencies other than N.Z. currency .... 7,903 .1 6 6. Other liabilities .. 734,479 9 4 £(N.Z.)37,221,591 3 2 ASSETS. 7. Deserve — £ d. (a) Gold 2,801,830 0 0 *( l b) Sterling Exchange . • • • 6,S0o.421 9 4 (c) Gold exchange . S. Subsidiary coin .. 161,838 18 2 9. Discounts — (a) Commercial & Agricultural Bills (b) Treasury and Local Body Bills 10. Advances— (a) To the State or State undertakings— (1) Marketing ■ Dept. . •. 3.586,S33 16 0 (2) For other ■purposes . 20,610,000 0 0 (b) To other Public Authorities • (c) Other —— 11. Investments .... 3,04*-,181 1 0 12. Bank buildings .. 13. Other assets loo,4ub IS 3 £(N.Z.)37,221.591 3 2 ‘Expressed in N.Z. currency

exchange. ratio 1937. (£N.Z.) per cent December 27 16,992,7-18 70.323 193S. August 29 13,695,000 67.2 September 26 11,449,147 60.785 October 31 . . 7,707.697 46.09 November 28 4,828,302 32.6S5 December 26 4,678,233 27.8S2 1939. January .30 . 4.133.586 20. < O February 27 4,839.500 25.799 March 27 4,659,874 25.419 April 24 4.629,061 25.11 May 29 . 4,564,206 25.136 June 26 5.600,692 30.219 July 31 5.576 957 28.132 Aug. 28 .. 5,690.208 28.112 Sept. 25 5.311.68' 25,822 Oct. 30 . 5,743.087 25.367 Nov. 20 7.543.770 30.624 Nov 27 6.624.585 28.477 Ilee. 4 . 5.961.673 26.631 Dee 25 8.717.735 32 200 Jan. 1 . . Jan. 8 .. 7.036.750 6.862.685 27.947 27.646 Jan. 15 . 6.865,121 27.630