RATES OF EXCHANGE IN LONDON.

Otago Daily Times, Issue 16645, 17 March 1916, Page 6

RATES OF EXCHANGE IN LONDON.

AN ALL ROUND RISE. THE CAUSE EXPLAINED. (Pee United Pbess Association.) WELLINGTON, March 16. On and after to-day the following bank rates of exchange on London coma into operation :—-New Zealand buying discountPer cent—l2s 6d on demand, 20s on 30 days, 27a 6d on 60 days, 37e 6d on 90 days, and 47s 6d.on 120 days. Selling premium: Per^nt.— 30s on demand, 12s 6d on 30 days 5s op 60 days, par on 90 days.. Telegraphic transfers, 30s. There is a rise of 5 3 per cent, all round on selling ratce and telegraphic transfers over the rates ruling yesterday. Bankers explain the rise as due in part to the balance of trade against Australia. Although New Zealand has_ a decided balance in its favour, yefc it is bound to somo extent to fall into line with Australia. The rise in the London selling , rate is also said to be due to the refusal of the Commonwealth Government (through the Treasurer, Mr H:ggs) to remove the embargo on the export of gold from Australia, which would to some extent have restored tho trade equilibrium between the Mother Country and Australia. It is ■understood that the recent rise in tho London selling rates to Australia and this latest advance in London selling rates to New Zealand are the outcome to some extent of an adverse Balance of Australian trade, combined with the refusal to allow gold to be exported to America (in coin) and India (in bars) as formerly.