RESERVE BANK

Nelson Evening Mail, Volume LXXIII, 21 June 1940, Page 2

RESERVE BANK

DECREASE IN STERLING EXCHANGE

NOTE ISSUE STILL RISING [United Press Association] WELLINGTON, This Day. A further decrease of £83,086 is shown in the sterling exchange funds of the Reserve Bank of New Zealand, ihe latest total being £14,546,013. Dairy advances at £3,614,039 show a decrease i of £103,340. Advances to the State for other purposes are unchanged at £19,760,000. A further increase of £37,776 brings the total of the note issue up to £18,369,114. The statement of assets and liabilities of the Reserve Bank as at the close of business on Monday, 17th June, is as follows: LIABILITIES

£(N.Z. >43,696,024 17 5 Expressed in N.Z. currency.

Proportion of reserve (No. 7 less No. 5) to notes and other demand liabilities. 41.868 per cent, compared with 41.963 per cent, on 10th June.

The reserve on Monday amounted to £17,329,343, compared with £17,412,318 on 10th June, a decrease of £82,975. A year ago the reserve totalled £8,538,840. and on 20th June, 1938, it stood at £19,825,248.

Sterling exchange on Monday totalled £14,546,013, compared with £14,629,099 on 10th June, a decrease of £83,086. Liabilities in currencies other than New Zealand currency on Monday were £18,509 (a decrease of £111), thus making the bank’s net overseas assets £14,527,504, compared with £14,610,479 on 10th June, a decrease of £82,875. A year ago the bank’s net overseas assets were £5,737.010, and on 20th June, 1938, they totalled £17,023,457. The bank’s gold holding is unchanged at £2,801,839. Subsidiary coin totals £156,664, a decrease of £3527. Advances to the State Marketing Department on Monday totalled £3,614,039, a decrease of £103,340, A year ago these advances amounted to £5,900,046. Advances to the State for other purposes remain unchanged at £19,760,000. A year ago these advances stood at £10,575,000. Investments amount to £2,540,127, an increase of £1473. Other assets total £277,341, an increase of £34,823. The note issue continues to expand, Monday’s total of £18,369,114 showing an increase of £37,776 since 10th June.. Demand liabilities to the State total £7,050,839, a decrease of £741,337. The trading banks’ reserve balances amount to £15,719,366, an increase of £541,711. Other demand liabilities at £251,531, show an increase of £57,954. Other liabilities total £786,665, a decrease of £49.652. The statement balances at £43,696,025, a decrease of £153,657. MOVEMENTS IN STERLING EXCHANGE The movements in the sterling exchange held by the Reserve Bank ol New Zealand during the last few months and in the ratio percentage of reserve to notes and other demand liabilities, are shown in the following table:—

The statutory linimum of the reserve ’»tic is ?5 per cent

£ s. d. 1. General Reserve Fund 1,500,000 0 0 2. Bank Notes 3. Demand Liabilities— 18,369,114 10 0 (a) State 7,050,838 12 5 (b) Banks 15,719,365 19 1 251,531 4. Time Deposits 5. Liabilities in currencies other than N.Z. Currency 18,509 3 6 6. Other Liabilities 786,665 4 4 £ (N.Z. >43,696,024 17 a ASSETS £ s. d. 7. Reserve— (a) Gold *(b) Sterling 2,801,839 10 0 Exchange 14.546,012 18 4 (c) Gold Exchange — 8. Subsidiary Coin 9. Discounts— 156,664 8 6 (a) Commercial and Agricultural Bills Cb) Treasury and — Local Body Bills — 10. Advances— (a) To the State or State Undertakings (1) Marketing Dpt (2) For other 3,614,038 18 4 Purposes 19.760,000 0 0 (b) To other Public Authorities — 11. Investments 12. Bank Buildings 2^540,127 11 7 13. Other Assets 277,341 10 8

Sterling Reserve 1937. exchange. ratio (£N.Z.) December 27 „ .... 16.992,748 70.323 1938. August 29 67.2 September 26 .... 11,449,447 October 31 November 28 .-. 4,828,302 December 26 .«. 4,678,233 1939. January 30 — 4.133.586 25.75 February 27 4.839.555 25.733 March 27 ..... 4.659.874 25.419 April 24 ...... 4.629,061 25.11 May 29 .... 4,564.206 June 26 5,600.692 30.249 July 31 .... 5.576.957 Aug. 28 .... 5,690.208 28.112 Sept. 25 .... 5,311.688 Oct. 30 .... 5.743 087 Nov 20 ... 7.543,770 Nov 27 .... 6.624.585 28.477 Dec. 4 .... 5.961.673 Dec 25 .... 8.717.735 32.200 Jan. 1 7.036.750 27.947 Jan. 8 .... 6.862.685 27.646 Jan. 15 .... 6.865.421 27.630 Jon 29 .... 8 725 720 30 50f Job 5 ... 9.242 501 31 588 Feb 26 ... 10.842.600 32 812 Mar 4 ... 10.020.871 32.377 Mar 25 ... 13.033.980 40.401 Apr 1 ... 12.707.890 39 224 Apr 8 .... 12.59J.193 39.2 Apr 15 12.882.659 39.592 Apr 22 ..... 13.683.506 40927 Apr 29 13.848 • 41 289 M 6 13.658.465 41.419 I <V‘av 13 .... 13.328 ? <5 40 752 May 27 13.719362 41.097 1 Tune 3 14.673.730 42.429 'June 10 14.629.099 41.963 j June 17 14.546.013 41.868