HIGH EXCHANGE

Evening Post, Volume CXXVII, Issue 147, 24 June 1939, Page 11

HIGH EXCHANGE

UNOFFICIAL MARKET

OPERATIONS BY TRADERS

(Special to the "Evening Post.")

AUCKLAND, This Day

Through the development of an unofficial exchange, many traders are drawing on overseas moneys that are not included in official sterling funds. Rates on the unofficial market have soared far beyond the official scale, and this week overseas funds were sold in London on the basis of £140 New Zealand currency for £ 100 sterling.

The official rate between Australia and New Zealand has been about J per cent.; but transactions have come to notice where 10 and 10 \ per cent, were paid on the unofficial market for Avstralian currency. A prospective buyer of £1000 Australian currency yesterday advertised in the "Herald," offering £1110 New Zealand currency.

Since December 5, returns on goods exported from the Dominion under licence have found their way into the official sterling funds of the banks. But there were exports prior to that date in which the pi-oceeds did not pass through the usual channels and which are now available on the unofficial market. Further, there have been steady additions to the unofficial exchange from dividend warrants, legacies, payments due from estates, commissions, and other payments.