EXCHANGE RATES

Evening Post, Volume CXXIX, Issue 136, 10 June 1940, Page 12

EXCHANGE RATES

LINKED CURRENCIES

BRITAIN, FRANCE, AND BELGIUM

(British Official Wireless.)

(Received June 10, 10.30 a.m.)

RUGBY, June 9

The measures which the Treasury announced last Friday to further restrict the market in free sterling have been well received in financial quarters. The announcement had been anticipated in the City, where action along these lines.had been favoured for some time. It is suggested that the free market ■will'now be so curtailed as to cease to have any importance. It has been repeatedly emphasised in official quarters recently that movements in the free rate had no real significance, as the bulk of the transactions were necessarily conducted at the official Tightening of control is particularly welcomed as attaining a maximum return to Great Britain from the great efforts of the export industries made during recent months. As to the U.S.A. • dollar-sterling exchange, it was reported on June 7 that the British Treasury had taken further steps to base foreign trade on the offi- j cial rate of exchange having the effect of restricting business in the free market for sterling exchange in the United States. This market had existed for some time, the official rate of London on New York being pegged at 4.03 dollars to £1. But "free" business was done day by day at rates as 2.99 7-8 ■ dollars in April, whereas in the closing rate on January 29 it had been 3.99 1-8, although 4 dollars had been reached that day. Rates varied sharply from day to day and during each day. The latest/ New York quotations were:—June 6, opening at 3.18| dollars, -reaching 3.85 dollars, and closing at 3.70; June 7, touched 3.35 dollarn, rose to 3.88 dollars, closed 3.81 dollars. (Britl§h Official Wireless.) RUGBY, June 8. A tripartite agreement between Belgium Great Britain, and France fixes the Belgian franc at 176£ to £1, which is the same as the French franc. < As a consequence of the financial partnership between the three countries there will be an equitable division between Great Britain and France on the one hand and Belgium on the other of charges in gold or foreign exchange resulting from the war. # The signature of a tr." partite financial agreement between Great Britain, France, and the Netherlands is expected' to take place in the next few days, a full agreement in principle having already been reached. . Thus the union between the four countries in their war effort will be effectively extended to the economic sphere. The Commonwealth Bank of Australia has fixed revised rates of exchange for trade transactions in Netherlands East Indies currency. Rates for telegraphic transfer transactions are? —. •'.■•'?''" -■-■'. ' "■' " ■ ■ ; * 'Guilders to £1 Aust. Buyjtig. y Selling. , 6.114 ■..' '6.014 • Rates for drafts at sight, 30, 60, and 90 days sight, may be ascertained from the Commonwealth Bank or any trading bank. . .' ■, The fixing of the rates follows upon the recent announcement that the Netherlands Government had joined the British-French" monetary agreement. The terms of the arrangement provided that Netherlands Indies trade with sterling countries would be at a fixed rate of 7,60 guilders to £1 sterling. The Netherlands Consul-General in Sydney has already announced that in Netherlands Indies trade with sterling countries transactions will be allow.cd only on sterling basis at a fixed rate of exchange based on 7.60 guilders to the fe\ sterling (cross rate). In Netherlands Indies trade with the United States, the normal dollar-guilder rate of 1.87£ will be maintained. In Netherlands Indies trade with other countries not participating in the British-French monetary agreement direct and indirect exports will be fully maintained and will be payable in United States dollars or other foreign currency allowed by the "Java Bank."