BANKS UNDERCUT
OFFERS OF LONDON FUNDS AT LOWER RATES. IMPORTERS APPROACHED. CHRISTCHURCH, Aug. 17. There are indications that an attempt will be made during the current import season to undersell the banks in exchange on London, which, by agreement with the Government, the banks are compelled to maintain at the rate of 125 per cent. During this week one local importing house has received three offers of London funds at lower rates. The first offer came from a representative of an English house, which was prepared to sell practically unlimited London funds at £123 15/- per cent on telegraphic transfer. Two other offers were from local brokers who offered London funds in £5OOO lots at rates varying from £123 15/- to £124 5/-. Similar offers have been made to other importers. The effect of this business, if it becomes general, will be to increase the surplus London funds for which the Government is responsible to the associated banks, and the expectation was that the full requirements of importers would be drawn from these funds, and in proportion as importers are financed outside them, the Government’s burden will become heavier.
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Bibliographic details
Hawke's Bay Tribune, Volume XXIII, Issue 210, 18 August 1933, Page 6
Word Count
189BANKS UNDERCUT Hawke's Bay Tribune, Volume XXIII, Issue 210, 18 August 1933, Page 6
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