RAISING WOOL PRICES
FKOFITS ON EXCHANGE
PASSED ON TO FARMERS
BUENOS AIRES, October 25.
In an effort to raise wool prices, the Government agreed today to forgo profits on exchange operations arising from wool exports. This will give exporters approximately 13 per cent, more than they arc receiving now for drafts. The Government action is intended to ensure that tho increase be passed on to farmers.
Under the controlled economy regime instituted last November, exporters wero forced to sell drafts to tho Government at fixed rates of exchange. Tho Government then auctions the drafts to importers wanting to remit funds abroad. This system piled up hugo profits, enabling the Government to finance its recovery plan.
In view of tho low wool prices, the Government has agreed to buy drafts from exporters at tho average of rates bid each, day by importers, less 5 per cent. This deduction guarantees the Government against loss in a falling exchange market. Exporters cannot avail themselves of tho now measure until they have sold all present stocks, as well as wool already purchased from producers but not yet delivered. It is hoped this will increase wool prices on tho farms.
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https://paperspast.natlib.govt.nz/newspapers/EP19341027.2.61
Bibliographic details
Evening Post, Volume CXVIII, Issue 102, 27 October 1934, Page 9
Word Count
195RAISING WOOL PRICES Evening Post, Volume CXVIII, Issue 102, 27 October 1934, Page 9
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