RESERVE BANK.

Manawatu Standard, Volume LIX, Issue 97, 24 March 1939, Page 5

RESERVE BANK.

STERLING EXCHANGE DECREASES. STATE BORROWING LOWER. Tho sterling’ exchange funds of the Reserve Bank of New Zealand on Monday totalled £4,547,863, a decrease on last week of £43,823. The bank's not overseas funds amount to £4,515,396. The proportion of reserve to notes and other demand liabilities is 25.129 per cent., fractionally higher than last week. Advances to the Primary Products Marketing Department now total £7,388,640, a further increase of £71,314. Advances to the State for “other purposes” are again lower and now stand at £12,250,000, a decrease of £415,000. The note issue at £14,825,501 is higher by £26,235. State deposits at £4,848,172 show a decrease of £646,188, while the trading banks’ cash reserves show an increase ! of £419,573. The statement of assets and liabilities of the Reserve Bank as at the close of business on Monday, March 20, is as follow :

Proportion of reserve (No. 7 less No. 5) to notes and other demand liabilities, is 25.129 per cenl., compared with 25.026 per cent, on March 13, 25.017 per cent, on March 6, and 73.143 per cent, on March 21, 1933. The reserve on Monday amounted to £7,317,187. compared with £7,376,349 on March 13," a decrease of £59,162. On March 21, 1938, the reserve stood at £19,977,383. Sterling exchange expressed in New Zealand currency this week amounts to £4,547,863. compared with £4,591,686 _ on March 13, a decrease of £43,823. There are liabilities in currencies other than New Zealand currency this week of £32,467 (an increase of £15,339), thus reducing the not overseas assets of the Reserve Bank to £4,515.396. A year ago the overseas assets of the bank amounted to £17,175,592. Gold remains unchanged at £2,801,791. Subsidiary coin at £203,863 shows a decrease of £547. Advances to the Primary Products Marketing Department total £7,388,640, increase of £71,314. Advances to the State for <f othcr purposes” shows a further decrease of £415,000, and now stand at £12,250,000. Investment sat £3,651.028 are unchanged. Other assets at £113,667 show an increase of £17.958. The note issue has increased by £26,235 to £14.825.501, at which figure it is £1.295.260 in excess of Die total of £13,530,241 on March 21. 1933. Demand liabilities to the State at £4,848,172 are down by £646,188. The trading banks’ reserve balances now lotal £8,908.979, an increase of £419.573. Other demand liabilities amount to £455,844, a decrease of £155,972. Other liabilities at £305,889 show a decrease of £29.084. The statement balances at £30,956,852, a decrease of £370.098. MOVEMENTS IN EXCHANGE. The movements in the sterling exchange held by the Reserve Bank of Now Zealand during the last few months and the decrease in. the ratio percentage of reserve to notes and other dcnufnd“liabilities are shown in the following table:

LIABILITIES. £ s d 1 General reserve fund .... 1.500,00 0 0 2. Bank notes 14,825.501 0 0 3. Demand liabilities — (a) State 4,848.171 11 4 (b) Banks 8,988.979 3 3 (r.) Other 406,843 17 9 4. 5. Time deposits — Liabilities in currencies other than N.Z. currency 32,467 3 9 6. Other liabilities 305,889 4 10 £N.Z.30,956,852 0 11 7. ASSETS Reserve-*- £ B d (a) Gold 2,801,791 0 0 (b) Sterling exchange . *4,847,883 2 9 8. (c) Gold exchange — Subsidiary coin 203,862 12 3 9. Discounts— (a) Commercial and Agricultural Bills ... —' (b) Treasury and local body bills — 10. Advances— (a) To tho State or State undertakings— (i) Primary P r oduets Marketing Dept 7,388,640 5 10 (ii) For other purposes 12,250,000 0 0 11. (b) To other Public Authorities — (c) Other — Investments 3,651,028 6 4 12. 13. Bank buildings — OUter assets 113,666 13 9 £N.Z.30,956,852 0 11 ♦Expressed in New Zealand currency.

1957. December 27 1938. August 29 September 5 September 12 September 19 September 26 October 3 Sterling Rercrvo exchange, ratio £ (N.Z.) per cent. 16,992,743 70.323 13.695,000 67.2 12,639.000 65.347 12.631.343 66.423 12,247,006 63.853 11,449,447 60.785 10.594,978 57.259 9.900.233 57 903 9,118,330 52.27 8',313.575 48 451 7,707,697 46.09 6.633.031 39 733 November 14 5,662,977 5.029,137 36.825 33.723 4.828,302 4,200,856 29 834 4,572,031 30.333 4,368,095 28.10* 4,673,233 27.882 1939.

January 2 4.017,232 26.13 January 9 3.933.851 25.526 January 16 26.782 January 23 4.395.525 26.695 January 30 4,133,586 25.75

February 6 .... 4,074.954 25.047 Feb. 13 „... 4.164,499 25.073 Feb. 20 4,523,031 25.378 Feb. 27 4,839,555 25.799 Mar. 6 4,705,897 25.017 Mar. 13 4,591.686 25.026 Mar. 20 4,547,863 25.129 The statutory minimum of the reserve ratio is 25 per cent.