EXCHANGE CONTROL

Dominion, Volume 34, Issue 81, 30 December 1940, Page 6

EXCHANGE CONTROL

Allocations Outstanding At End Of Year STATEMENT BY RESERVE BANK ON PROCEDURE The procedure arranged for dealing with exchange allocations outstanding at the end of the year is announced as follows by the Reserve Bank of New Zealand: — Ou January 1, 1941, all outstanding exchange allocations in respect of third and fourth period import licences will be cancelled— including allocations for months iu 1944. This provision is not intended to deprive importers of exchange allocations which are still required iu respect of goods actually admitted under third or fourth period licences before January 1, 1941; and the trading banks are accordingly being authorized, if requested before January 21, 1941, by the importers concerned, to reinstate such allocations, or where applicable, to carry them forward from 1940 into 1941'. This applies to third party certificates as well as to exchange authorities.

An important, stipulation is that no allocation on a third or fourth period exchange authority or t 1 "'"’ l party certificate ma_v be used to cover any remittance in respect of goods admitted under a fifth period licence. Remittances in respect of goods ordered under -third or fourth period licences, but admitted iu 1941 under fifth jxtriocl licences, will of course be provided for in the relative fifth period exchange authorities, unless remittance has been made before January 1. 19-11, under third or fourth period exchange authorities of third party certificates. In the latter ease the amount applied for under fifth period exchange authorities should bo correspondingly reduced. It is explained by the Reserve Bank that the above procedure is occasioned partly by the expiry of third and fourth period licences ou December 31, 1940, and partly to provide a basis for the bank to deal with fifth period allocations to the best advantage of all importers.