EXCHANGE RATES

New Zealand Times, Volume LII, Issue 12096, 25 March 1925, Page 6

EXCHANGE RATES

NO IMPROVEMENT LIKELY IMPORTANCE OF THE GOLD ' STANDARD FACTOR. ACCUMULATIONS OF CREDIT. “No prospect whatever,” replied a well-known banking authority, of whom a pressman asked the question, whether, in view of financial developments in England, the rate of exchange from London to New Zealand is likely to show an improvement in favour of our exporters. “There is not likely to be any material change in the position,” continued this authority, “until the gold standard factor comes into the question. The position which causes high exchange is still evident—large accumulations of our credits in England—ana we are not shipping gold from England. Though gold has been recently shipped from America to Australia, it has not affected the exchange rates from London to Australia.” “Will the position improve when oui imports more nearly balance exports, as the exporting season declines?” was the next question. The reply was that whilst shipments of wool are drawing to a close, qpr meat shipments are scarcely in the flush,” and the temporary holu-up of shipping in New Zealand hns further delayed the getting away of the season’s produce, throwing the itineraries of ships out of gear, and extending the export period. Imports, the banker agreed, were more likely to balance the position as the winter approached. But he did not think the exchange position would alter for that reason, judging from experience.

“There was no change whatever in the rates of Exchange between November, 1922, and March, 1924,” he said, “and then the next change did not occur until October, 1924, when there was an increase in the buying rates on London. Thus it is clear that seasonal operations have not had an effect on exchange rates.”