EXCHANGE ALLOCATIONS

Greymouth Evening Star, 30 December 1940, Page 3

EXCHANGE ALLOCATIONS

RESERVE BANK PROCEDURE. [PER PRESS ASSOCIATION.] WELLINGTON, December 29. The Reserve Bank announces that the following procedure has been arranged for dealing with the exchange allocations outstanding at the end of the current year. . (1) On first January, 1941, all outstanding exchange allocations in respect of third and fourth period import licenses will be cancelled —including allocations for the months in 1941.

(2) This provision is not intended to deprive importers of exchange allocations which are still required in respect of goods' actually admitted under the third or fourth, period licenses before January 1, 1941; and the trading banks are, accordingly, being authorised, if requested before January 21, 1941, by the importers concerned, to reinstate such allocations," or, where applicable, to carry them forward from 1940 into 1941. This applies to third-party certificates as well 'as to exchange authorities. -

(3) An important stipulation is that no allocation on a third or fourth period exchange-authority, or third party certificate, may be used to cover any remittance; in respect of goods admitted under a . fifth period license. (4) Reinittances in respect of goods ordered under third or fourth period licenses, but admitted in 1941, under fifth period licenses, will, of course, be provided for in the relative fifth period exchange authorities? unless a remittance has been made prior do January 1, 1941, under third or fourth period exchange authorities, or third party certificates. In the latter case, the amount applied for under fifth period exchange authorities should be correspondingly reduced. , It is explained by the Reserve Bank that the above procedure is occasioned partly by the expiry of third and fourth period licenses on December 31, 1940, and partly to provide a basis for the bank to'deal with fifth period allocations to the best advantage of all importers.