EXCHANGE OF LONDON

Hawke's Bay Tribune, Volume XXIV, Issue 195, 1 August 1934, Page 8

EXCHANGE OF LONDON

Associated Banks’ Rates NEW SCALE ANNOUNCED By Telegraph—Press Association. WELLINGTON, July 31. In view of the announcement made by the Reserve Bank of New Zealand on July 19, associated banks in New Zealand have decided to adopt the following exchange rates on London on and alter August I 1931: — BU YI h .

Consequent upon the above adjustment in the London exchange rates, the following rates will be adopted between New Zealand and Australia on and after August 1, 1931: —Buying rate, £101; selling rate, £lOO 10/-; on the basis of £lOO New Zealand. DISCOUNTS & REDISCOUNTS Reserve Bank Rates Bv Telegraph—Press Association WELLINGTON, July 31. The Reserve Bank announces that until further notice the minimum rate at which it is prepared to discount or rediscount bills is 4 per cent, per annum. It is explained that this rate applies only to bills which are payable in New Zealand and which are covered by Section 13 of the Reserve Bank Act, 1933. Being a minimum rate, it applies only to those eligible bills which are regarded as first-class—for example, a bill bearing the names of one of the other banks aud of one of the principal merchant houses in New Zealand would bo so regarded. The Reserve Bank’s discount rate should not be confused with the overdraft rate of other banks. BUYERS OF STERLING N.Z. Banks’ Policy Change LONDON, July 31. The “Evening Standard” says: “Until recently Australian and New Zealand banks in London were lenders of substantial sums at low rates. Today, instead of this practice, they are bidders for sterling deposits at rates of up to one per cent. “This is attributable much less to the contraction of the surplus of their sterling balances here than to increasing opportunities of using the money profitably in Australia and New Zealand. As there is little likelihood of early revision of the exchange rate, they are willing to take deposits offered cheaply on the money market and transfer them to use in their own country.”

T .T.(from Demand ... London) . Old. £ 8. d. .. 124 10 0 .. 124 0 0 New. £ 8. 123 10 d. 0 3 days .... ,. 123 19 6 123 9 0 30 days ... .. 123 15 0 123 5 0 60 days ... .. 123 10 0 123 0 0 90 days ... .. 123 5 0 122 15 0 120 days ... .. 123 0 0 122 10 0 SELLINC. Old. New. £ 8. d. £ 8. d. T.T. (from London) .. .. 125 0 0 124 10 0 Demand ... .. 124 17 6 124 7 6 30 days .... .. 124 15 0 124 5 0 60 days ... .. 124 12 6 124' 2 6 90 days .... .. 124 10 0 124 0 0