EXCHANGE ON LONDON
NEW RATES GIVE AUSTRALIA ADVANTAGE
(By Telegraph.—ffpeciai to The Mail.) Tiu.s Day.
According lo the now, rates ; if Australian .-xchahge on Locdbo, Australian exporters will have an advantage of 2/6 per cent, in selling their drafts compared with New Zealand exporters. The condition of bank bailees in London caused by heavy importing is responsible for the change in.rates. When the imports arr heavy bank surpluses in London are reduced, so that the tendency is for the banks to offer better terms to those who are prepared to sell drafts which can be collected in London. Exporters therefore reap the advantage. In the Dominion imports have increased and the value of. the exports declined so that conditions lead to the assumption that the New Zealand backs may adjust exehauge rates in cdnjformity with* the tendency in Australia. At the same lime it,should bn pointed out that New Zealand banks do not always, follow. Australian rates.
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Bibliographic details
Nelson Evening Mail, Volume LXI, 10 June 1926, Page 7
Word Count
157EXCHANGE ON LONDON Nelson Evening Mail, Volume LXI, 10 June 1926, Page 7
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