N.Z. EXCHANGE
ABOVE ECONOMIC PARITY
The small appreciation of 10s in the New Zealand pound, remarked the London "Daily Telegraph," referring to the recent revision, led some people to wonder whether this is' Dot the-first of a series of downward steps. , ' ' "This attitude is understandable, adds: the journal, "for it is well known that the rate is well above its economic parity. It can be 'stated definitely, however, that no further revision is • contemplated, : for the new Reserve' Bank recently announced its intention of maintaining a stable rate. It has fixed its own rates for T.T.s on London at £125 (N.Z.) selling and £124 (N.Z.) buying, and the change made by the trading banks, who are now free to fix their own quotations, was made to conform with the official rates. "The trading banks' T.T. rates in New Zealand are now £124 10s and £124. By making this small reduction they will tend to check the accumulation of London funds, while ensuring that any resales of sterling to the Reserve Bank will not involve a loss. It will be noted that their dealing margin is abnormally low, being only 10s, compared with. 15s for the South African banks. The spread between the sight rates, however, is in both cases 255. The "Reserve Bank's discount rate has been fixed at 4 per cent."
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/EP19340905.2.123.2
Bibliographic details
Evening Post, Volume CXVIII, Issue 57, 5 September 1934, Page 12
Word Count
222
N.Z. EXCHANGE
Evening Post, Volume CXVIII, Issue 57, 5 September 1934, Page 12
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