AUSTRALIAN EXCHANGE.

New Zealand Herald, Volume LXVIII, Issue 20767, 9 January 1931, Page 10

AUSTRALIAN EXCHANGE.

RATES FOR NEW ZEALAND.

ACTION BY BANK OF N.S.W.

TEN PER CENT. ON DRAFTS.

IN LINE WITH LONDON RATES.

[BY TELEGRAPH. —OWN CORRESPONDENT.] WELLINGTON, Thursday. A substantial alteration in the New Zea-land-Australian exchange rates has been made by the Bank of New South Wales. The new rates, which are being charged by the bank as from Mohday, January 5, are as follows: Australia on New Zealand: Buying, £lO9 10s; selling, £llO, on the basis of £IOO in New Zealand. New Zealand on Australia: Buying, £110; selling, £lO9 10s, on the basis of £IOO in New Zealand. In respect of transactions, New Zealand on Australia, this means that in negotiating a bill of exchange for £llO, payable in Australia, the Bank of New South Wales will pay £IOO in New Zealand. Conversely, when selling a draft or telegraphic transfer for £lO9 10s, payable in Australia, the bank will charge £IOO in New Zealand. In negotiating a cheque or a bill of exchange for £IOO, payable in Australia, the bank will pay in New Zealand £9O 18s 2d, or, in other words, will charge exchange amounting to £9 Is lOd. Similarly, in negotiating a cheque or a bill of exchange for, say, £250, payable in Australia, the bank will pay in New Zealand £227 5s sd, the exchange charged thus being £22 14s 7d. In regard to selling transactions, the position is that.if the Bank of New South Wales sells a draft or a telegraphic transfer on Australia for £IOO, the bank will charge its customer £9l 6s 6d, or, in other words, will allow him £8 13s 6d in exchange. Put another way, if someone wishes to remit, say, £250 to Australia by draft or telegraphic transfer, ho will pay the bank £228 6s 3d, the exchange allowed him thus being £2l 13s 9d.

In regard to the Australian-New Zealand exchange, tho Bank of New South Wales has acted independently in altering the rates, which were fixed by the associated banks of New Zealand on October 30. This is in line with its action taken last Monday, when it substantially advanced its rates, Australia on London, to bring them into conformity with "open" market conditions. The following day it was announced that the associated banks of Victoria, which include the Bank of Australasia, the Union Bank of Australia and tho Commercial Bank of Australia, had decided similarly to raise their exchange rates on London.

Up to the present the associated banks of New Zealand have made no decision in regard to the New Zealand-Australian exchange rates, but it is understood that the matter is under discussion. As already stated, the Bank of New South Wales acted independently in advancing its rates. In the meantime it is understood tho other five banks trading in New Zealand aro working on the rates arranged by the associated banks on October 30.

ENGLAND AND AUSTRALIA

COMMENT IN LONDON.

PRICES OF SHARES FALL.

(Received January 8. 9.25 p.m.) LONDON, Jan. 8

The Financial Times says the absence of a statement from the associated Australian banks is causing surprise in the city. Well-informed people express the opinion that the break-away by the Bank of New South Wales may lead to the collapse of the association.

The exchange is fluctuating in accord ance with the actual market conditions, which is eminently desired.

The Financial News remarks that the City interpreted the latest advices from Australia unfavourably, and the funds have been influenced and stocks lowered.

The Daily Telegraph says that although the reduction of tho Union Bank's interim dividend \Vas not surprising, Australian bank shares were marked down, and are standing generally at, or below, the lowest levels touched in 1930.