EXCHANGE RATES.

Manawatu Standard, Volume L, Issue 114, 10 April 1930, Page 9

EXCHANGE RATES.

NO CREDIT RESTRICTION. AUCKLAND, April 9. Inquiry in commercial circles in Auckland did not elicit any confirmation of the belief, said to be held by Wellington traders, that importers will have to face difficulties additional to the already high rates of exchange. The suggestion made in Wellington was that the banks are likely to- take the stand that unless a letter of credit is established they will not continue the system under which an exporting firm in the United Kingdom can draw against a New Zealand-importer for cash against documents. A representative of one of the large importing firms in Auckland said- that no difficulty had been experienced in carrying on their business in the usual way. No restrictions had been placed on ordinary trade transactions, but banks were not facilitating what might be called pure exchange transactions, the obvious purpose being to prevent Australian -dealings being carried out through New Zealand. A banker said he had not noticed anv increase in the number of applications for letters of credit such ns would take place if that backing of transactions were being demanded at the other end. No scrutiny was being exercised to obtain letters of credit or other banking service. “It is not being done yet, but of course I cannot say that it will not be done,’’ he.added. <