RATES OF EXCHANGE

Manawatu Standard, Volume LII, Issue 241, 10 September 1932, Page 7

RATES OF EXCHANGE

NEW ZAELAND AND AUSTRALIA

EFFECT ON LOANS

EXPLANATION TO FINANCIERS.

(United Press Association—By Electric Telegraph.—Copyright.) Received September 10, 10.30 a.m. LONDON, Sept. 9.

In securing attractive terms for the New South Wales conversion loan, Mr S. M. Bruce, the Australian Resident Minister, will find it necessary to explain the difference between the New Zealand and Australian rates of exchange to which some financiers apparently attach undue significance, concluding that the higher price for New Zealand loans is due in some measure to the maintenance of the £lO rate compared with Australia’s £25. Mr Bruce will doubtless take the first opportunity of explaining the reasons for Australia keeping at the present level.

COMMONWEALTH BANK’S DECISION.

NO CHANGE TO- BE MADE,

Received September 10, 10.10 a.m. SYDNEY, Sept. 10. The Commonwealth Bank Board decided that there should be no change in the exchange rate. Sir Robert Gibson, chairman of the Commonwealth Bank, said there would be no alteration in the buying or selling rates on London. Following the improved national outlook, a large amount of Australian capital that formerly had been sent abroad was now been brought back to Australia.

LOANS RENEWED

REDUCED RATE OF INTEREST.

SYDNEY, Sept. 9

The Premier, Mr B. S. Stevens, announced to-niglit that during the past few weeks the Government had been able to renew debentures and Treasury bills in London . amounting to £lO,500,000 at the rate of 2$ per cent. The previous rates were 5 per cent, and 3J per cent, respectively. Tho new rates would result in a saving of £IBO,OOO a year, exclusive of the cost of exchange on remittances. He added that, although tho money was undoubtedly cheaper, London regarded the renewals as striking evidence of increased confidence in Australian credit.