Forward Exchange Contract- Profits
WELLINGTON, Sat. (Sp.).—“Drafts negotiated since August 19 by the trading banks under forward exchange contracts are dealt with at the rate fixed in terms of the forward exchange contracts, and therefore there is no question of any refund to customers for whom the trading banks negotiated the drafts under such contracts,’’ said the Minister of Finance (Mr Nash), in response to an inquiry last night.
“As the trading banks act on behalf of the Reserve Bank in entering into forward exchange transactions in cases authorised by the Reserve Bank, there is no question of any loss being incurred by the trading banks on these contracts as a result of a change in the exchange rate.
“Any profits or losses are passed on to the Reserve Bank by the trading banks and on to the Government by the Reserve Bank."
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/NA19481030.2.22
Bibliographic details
Northern Advocate, 30 October 1948, Page 3
Word Count
143Forward Exchange Contract- Profits Northern Advocate, 30 October 1948, Page 3
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