Dollars Needed For Repaying Advance

Northern Advocate, 21 October 1949, Page 5

Dollars Needed For Repaying Advance

SYDNEY, Fri., (12.45 p.m.).— Explaining the announcement by the Prime Minister (Mr Chifley) that Australia would draw $20,000,000 from the International Monetary Fund, the financial editor of the Sydney Morning Herald says the amount will help pay for equipment needed for national development, but will bring little or no relief to private traders. “A national dollar export drive is made all the more necessary because of interest charges on drawings and the ultimate refunding of dollars,” he adds.

“Technically, the transaction is not a loan. It is the exchange of Australian currency for its equivalent in dollars. with the implication that the transaction will be reversed some time in the future.

“The Commonwealth bank has placed £8.918,617 Australian, to the credit of the International Monetary Fund in its books. “At the same time 520.000.000 has been placed t.o the credit of the Commonwealth with the New York banks.

“There is provision for the country getting the dollars to consult the fund about repayment seven years later.”

The General Council of the International Refugee Organisation has formally passed a resolution prolonging its activities for nine months after June 30, 1950. The organisation has been told, without reasop, by the Polish authorities, to cease activities in Poland.