RESERVE BANK

Nelson Evening Mail, Volume LXXII, 21 January 1939, Page 7

RESERVE BANK

INCREASE IN STERLING EXCHANGE RESERVE RATIO IMPROVES [United Press Association! WELLINGTON, This Day. 11 The sterling exchange funds of the e Reserve Bank of New Zealand as at - Monday totalled £4,373,105 in New Zcat land currency, as compared with £3,e 933.510 on 9th January, an increase of n £439,254. The proportion of the bank’s [i reserve to notes and other demand liabilities improved during the week from 25.526 per cent, to 26.782 per cent, i Other features of the bank’s state--1 meat are a further decrease of £297,159 e in the note issue, an increase of £IBO,e 554 in State deposits, a large increase of £631,496 in trading banks’ cash, a decrease of £139,796 in dairy produce advances and an increase of £140,000 in advances to the State for other pure poses. The statement of assets and liabilities of the Reserve Bank as at Monday, 16th January, is as follows: —

Proportion of reserve (No. 7 less No. ' 5) to notes and other demand liabilities, 1 26.782 per cent., compared with 25,526 per cent, on 9th January, and 69.963 per ■ cent, on 17th January, 1938. The statu--1 lory limit is 25 per cent. 5 The reserve on Monday amounted to ■ £7,171,927, as compared with £6,734.499 I on 9th January, an increase of £437,428. 5 On 17th January. 1938, the reserve • amounted to £19.484,983. Sterling exchange expressed in New i Zealand currency totals £4.373.105. as compared with £3.933,851 on 9th Janui ary, an increase of £439,254. Against . this, liabilities in currencies other than . New Zealand currency, total £2969. . compared with £1143 on 9th January. an increase of U 1826. A year ago the , banks’ sterling funds totalled £16.683,102 Gold still stands at £2,801.791. Subsidiary coin at £192.903, shows a de- ' crease of £1497. Treasury bills discounted remain unchanged at £500,000. Advances to the Primary Products Marketing Department total £6.028.050. a decrease of £139,796. Advances to the State for “other purposes” total £10.970.000. an increase of £140.000. Investments at £3,603.300, show no change. Oilier assets amount to £48,773. decrease of £18.771.

LIABILITIES £ s d j 1. General reserve fund 1.500,000 0 1 2. Bank notes 15,830,003 i 3. Demand liabilities— 10 (a) State 2.801,145 < b * Banks 8,012.807 13 (c) Other 133 901 4. Time deposits — 0 5. Liabilities in currencies other than N.Z. 0. Other liabilities 237,432 5 11 £(N.Z.)28,518,378 17 5 ASSETS il s. d. 7. Reserve— (a) Gold 2,801,791 0 0 *tb) Sterling exchange 4,373,105 2 5 (c) Gold exchange ... — 8. Subsidiary coin 192,903 9 Discounts— 7 6 (a> Commercial and Agricultural Bills — (b) Treasury & Local Body Bills 500.000 0 0 10. Advances— (a> To the State or State undertakings— (i) Primary Products Marketing Department 0,028,505 11 10 (ii* For other purposes 10.970,000 0 0 (b> To other Public Authorities — (c) Other — 11. Investments 3,003.300 6 2 12. Bank buildings — 13. Other assets 48,773 9 6 £(N.Z. >28.518.378 17 5 "Expressed in N.Z. currency.