PRICE OF WOOL.
EFFORT TO APPRECIATE. MOVE IN ARGENTINE. BUENOsTTIRES, Oct. 25. In an effort to raise wool prices, the Government agreed to-day to forgo profits on exchange operations arising from wool exports. This will give exporters approximately 13 per cent, more than they are receiving now for drafts. The Government action is intended to ensure that the increase be passed on to farmers. Under the controlled economy regime instituted last November, exporters were forced to sell drafts to the Government at fixed rates of exchange. The Government then auctioned the drafts to importers wanting to remit funds abroad. This system piled up huge profits, enabling the Government to finance its recovery plan. In view of the low wool prices, the Government has agreed to buy drafts from exporters at the average of rates bid each day by importers less 5 per cent. This deduction guarantees the Government against loss in a falling exchange market. Exporters cannot avail themselves of the new measure until they have sold all present stocks, as well as wool already purchased from producers, but not yet delivered. It is hoped this will increase wool prices on the farms.-
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https://paperspast.natlib.govt.nz/newspapers/MS19341027.2.57
Bibliographic details
Manawatu Standard, Volume LIV, Issue 283, 27 October 1934, Page 7
Word Count
193PRICE OF WOOL. Manawatu Standard, Volume LIV, Issue 283, 27 October 1934, Page 7
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