EXCHANGE RATES.

Manawatu Standard, Volume LI, Issue 42, 20 January 1931, Page 8

EXCHANGE RATES.

ANOTHER ADVANCE.

WELLINGTON, Jan. 20.

Yet another advance in the exchange rates New Zealand on Australia was announced yosterday by the Bank of New South Wales acting on instructions from head office in Sydney and independently of tho associated banks in New Zealand. The new rates, which represent an advance of £6 12s 6d on both the buying and tho selling sides on those charged by the Bank of New South Wales as from January T 5, came into operation yesterday. They are as follow: Buying. Selling. £ s. d. £ s. d. Victoria 116 15 0 116 5 0 New South Wales .. 116 15 0 116 5 0 Queensland 116 17 6 116 2 6 Ho. North of Rockhampton 117 2 6 115 17 6 South Australia ... 116 15 0 116 5 0 West Australia (Perth and . Freemantle) 117 2 6 115 17 6 Do. (all other prices) 117 7 6 115 12 o Tasmania 116 15 0 116 5 0 All on the basis of £IOO New Zealand. No concessions. Full rate to be charged on Commonwealth notes.

Inquiries made yesterday indicated that none of the other five banks has made any change in. the Australian exchange rates which were “carded” by them at the beginning of last week. During tho last fortnight the changes and adjustments in the exchange rates have been very rapid. On January 5 it was announced from Sydney that the - Bank of New South Wales, acting independently of the other Australian' banks, had advanced tho rates Australia on London £6 lOs on the buying side and £6 7s 6d on the selling sido to £lls and £lls 7s 6d respectively, on the basis of £IOO London, for telegraphic transfers, the other usances being altered accordingly. Next day it was announced from Melbourne that the associated banks of Victoria had advanced their rates, but that their selling rate was £lls 10s. At the same time the Bank of New South Wales advanced its rates New Zealand on Australia to £lO9 10s (buying) and £llO (soiling), and conversely Australia on New Zealand, on the basis of £IOO New Zealand. This was followed by a slight adjustment of the rates for different parts of Australia. The matter was 'discussed by the associated banks of New Zealand; but no agreed decision was reached. Tho other five banks quoted the new buying rates, but were not disposed to offer the high premium involved in the selling rate. On January 13 it was announced from Sydney that the banks there had sharply advanced the rates Australia on London,' and increased the rates for telegraphic transfer Australia on New Zealand. , The next move came on January 14, when tho associated banks of New Zealand announced a stiff advance in tTio rates New Zealand on London. The selling rate for telegraphic transfer rose to £lO7 10s and for demand drafts to £lO6 17s 6d, the buying rate for the latter being increased to £lO6, the rates for other usances being altered acordingly. Following adjustments of the rates London on New Zealand and London on Australia, came the announcement on Saturday that at a conference of Australian bankers in Melbourne it had been decided to increase the T.T. buying rate for London money from £llß to £125, and the selling rate from £llß 7s 6d to £125 10s, similar action being taken at tho London end. The advance announced yesterday by the Bank of New South Wales follows as a consequence of the big increase in the Australia-London rates, being made for the purpose of blocking arbitrage transactions.