RESERVE BANK

Nelson Evening Mail, Volume LXXII, 25 November 1938, Page 9

RESERVE BANK

FURTHER DECLINE IN STERLING EXCHANGE TOTAL DOWN TO £5,029,137 l United Press Association I WELLINGTON, This Day The continuous and rapid fall in the sterling exchange funds of the Reserve Bank of New Zealand shows no signs of a check, the latest decrease of £633,840 bringing the total on Monday down u) £5,029,137 in New Zealand currency. The proportion of the bank’s reserve to notes and other demand liabilities is now down to 33.723 per cent. There has been a further increase of £830,000 in the Bank’s total advances to the State. The statement of assets and liabilities of the Reserve Bank as at the close of business on Monday, 21st November, is as follows: LIABILITIES

Proportion of reserve (No. 7 less No. 5) to notes and other demand liabilities, 33.723 per cent., compared with 36.825 per cent, on 14th November, and 39.733 per cent, on 7th November. The statutory limit is 25 per cent. The reserve last Monday amounted to £7,809,979, as com. pared with £8,444,283 on 14th November, a decrease of £635,304. Sterling exchange, expressed in terms of New Zealand currency, continues to decrease, and now stands at £5,029,137, as against £5,662,977 on 14th November. The latest figure shows a decrease of £8,666,000 since 29th August, and compares with a total of £16,552,344 on 22nd November, 1937. Gold remains unchanged at £2,801,791. Subsidiary coin amounts to £209,512, a decrease of £6913. Advances to the Primary Products Mar ketipg Department total £4,699,033, an

increase of £630,369. Advances to the State for other purposes have increased by another £200,000 and now stand at the high level of £B,500,000. Investments amount to £3,500,871, an increase of £18,306. Other assets* total £101,360, an increase of £20,228. The note issue has increased by £75,020, and now totals £14,496,272. Demand liabilities to the State amount to £2,228,333, a decrease of £364,209. The trading banks’ reserve balances are £5,546,481, an increase of £683,021. Other deman dliabilities at £884,574 show a decrease of £168,610. Liabilities in currencies other than New Zealand currency total £21,949, * an increase of £1464. Other liabilities at £164,094 show an increase of £2064. The statement balances at £24,841,704, a.i increase of £228,749.

1. General reserve fund 1,500,000 0 0 2. Bank notes 14,496,272 0 0 3. Demand liabilities— (a) State 2,228,333 4 9 (b) Banks 5,546,481 6 11 884,574 0 4. Time deposits 6. liabilities in currencies cthe r than N.Z. currency 21,949 1 1 6 Other liabilities 164,094 9 3 £N.Z.24,841,7M 5 0 ASSETS 7. Reserve— £ fl d. (a) Gold *(b) Sterling ex2,801,791 0 0 change 5,029,137 3 2 (cj Gold exchange . 8. Subsidiary coin 209,512 7 9 9 Discounts— (a) Commercial and agricultural bills (b) Treasury and lo- — cal body bills 10. Advances— (a) To the State or State undertakings: (i) Primary Products Marketing Departnient 4,699,033 5 2 (ii) tor other pur0 0 8,500,000 (b) To other public authorities — 11. Investments 3,500,870 16 5 12. Bank buildings 13 Other assets 101,359 12 6 £N.Z.24,841,704 5 0 Expressed in New Zeaalnd currency