HIGH EXCHANGE

New Zealand Herald, Volume LXXVI, Issue 23381, 24 June 1939, Page 17

HIGH EXCHANGE

UNOFFICIAL MARKET. DEMAND FOR LONDON FUNDS OPERATIONS BY TRADERS Through tho development of an unofficial exchange, many traders are drawing on overseas moneys that arc not included in official sterling funds. Rates on the unofficial market liavo soared far beyond the official scale, and this week overseas funds were sold in London 011 the basis of £l4O New Zealand currencyt for £IOO sterling. The official rate between Australia and New Zealand has been about per cent, but transactions have come to notico where 10 and 10} per cent were paid on tho unofficial market for Australian currency. A prospective buyer of £IOOO Australian currency yesterday advertised in the Herald, offering £lllO New Zealand currency. Since December 5, returns on goods exported from tho Dominion under licenco have found their way into the official sterling funds of the banks. But there were exports prior to that dato in which the proceeds did not pass through tho usual channels and which are now available on the unofficial market. Further, there have been steady additions* to the unofficial exchange from dividend warrants, legacies, payments due from estates, commissions and other payments.