RESERVE BANK

Evening Post, Volume CXXXII, Issue 106, 31 October 1941, Page 7

RESERVE BANK

SHARP DROP IN STERLING

The return of the Reserve Bank of New Zealand for the week ended October 27, 1941, when compared with that for last week, shows two important movements: sterling exchange (N.Z. currency) at £11,528,333 shows a decline for the week of £3,066,656, and the advances made by the Bank to the State for purposes other than marketing are Increased this week by £3,000,000 from £13,500,000 last week to £16,500.000. For the week ended October 28, 1940, the sterling exchange was shown at £8,929,403. Advances to the State at the same date amounted to £25,140 000. The bank-note issue this week at .£22,132,714 has declined by £ 77,073, and compares with £20,200,951 as at October 28, 1940. Advances to the Marketing Department at £6,232,857, are also down and that by £167,013, and compare with £2,866,371 for the corresponding week of last year. Movements in the returii for this week are as follows:— LIABILITIES. • £NZ s. d. £NZ General Reserve . 1,500.000 0 0 Unchanged Bank-notes 22,132,714 0 0 t77»,673 Demand LiabilitiesState 7.G98.391 8 1 t66,049 Banks 9,168,186 12 2 1214,223 Other 1,007,445 3 9 "149,619 Currencies other than N.Z 13,804 12 10 t2,588 Other liabilities 1,074,433 15 10 *70.675 £NZ42,594,975 12 8 U40.23S ASSETS. £NZ s. d. £NZ Reserve— Gold .... 2,801,874 10 0 Unchanged Ster. exchange 11,528,332 19 3 t3,066,656 Subsidiary coin ... 64,115 211 »4.129 Advances to StateMarketing ... 6,232,857 10 9 T167,013 . Other purposes 16,500,000 0 0 *3,000.000 Investments .. 3,842.378 14 1 Unchanged Other assets .. 1,625,416 15 8 , *89,302 £NZ42,594,975 12 ,8 f140,238 •Increase. tDecrease. Proportion of reserve 'o notes and other demand liabilities, 35.785 per cent., compared with 43.219 per cent, for the week ended October 27, 1941, and 27.913 per cent, for the week ended October 28, 1940. The statutory limit is 25 per cent