DOLLAR CURRENCY

Dominion, Volume 35, Issue 89, 9 January 1942, Page 4

DOLLAR CURRENCY

Negotiable At Any Bank EXCHANGE RULES Position In New Zealand United States dollar currency brought into New Zealand may be negotiated at any trading bank, stated a Wellington banking official last night in commenting upon cabled information from Australia that visitors there were now permitted to use any United States dollar currency which they brought with tlftmi for payment for goods and services. He said that a similar exemption from thesexchange regulations had not . been made in New Zealand, but in view of the negotiability of the notes at banks, the requirements of the New Zealand regulations should not involve any hardship. Under the Finance Emergency Regulations, residents of New Zealand who held dollars were required to declare them to the Reserve Bank, but residents (other than banks) are not permitted to purchase dollars or other foreign currency except through official channels, or to give, goods and services in exchange for dollars or any other foreign currency in New Zealand. There is no restriction on the importation of foreign currency into New Zealand except in the case of sterling notes. The reason for the restriction in that case was that there was reason to believe that large quantities had fallen into the hands of the enemy when he over-ran France and other European countries; and as sterling was universally accepted/the enemy would naturally endeavour to realize on his 111,-gotten gains in a number of countries.

The ruling exchange rate for American dollar notes is 3.36 to the £, giving them a value of about 5/11 each. That was the buying price over the bank counter. However, there was a special rate for dollar cheques, which the Bank of New Zealand quoted at 3.26 to the £l. There were no quotations for silver dollars, which were rarely tendered. The exchange rate for the Canadian dollar note was 3.72 to the £, equivalent to 5/4 each. 1