NEW ZEALAND EXCHANGE.

Otago Daily Times, Issue 19373, 8 January 1925, Page 8

NEW ZEALAND EXCHANGE.

THE POUND DEARER. (From Our Own Correspondent.) LONDON, December 3. From to-day the Now Zealand exchange rates will advance—that is, a further appreciation has occurred in the New Zealand pound. The Associated Australasian Banks in London will sell drafts and mail transfers on New Zealand at 37s Cd per cent, premium, and cable transfers at 4bs per cent, premium, a rise of 10s in each case, while the rate at which they will purchase bills drawn on New Zealand will be 5s per cent, discount lor sight bills, a reduction of 3s in the discount. Thus, not only has the New Zealand pound appreciated, but the margin between the selling and buying rates for drafts has been widened from 37s 6d to 42s 6d. The latter is the same margin ns prevails in the case of the Australian exchange. The New Zealand exchange position is in miniature a replica of the Australian. Money is being piled 'up in London at a time ’when the dominion’s most active export period is commencing, and funds are wanted in New Zealand to finance these shipments, which in the case of wool are commanding an unusually high price. At the same time the New Zealand exchange is still 25s below the Australian rate, and In view of the different conditions governing, it is considered that the note circulation in New Zealand should be no question of emergency currency measures being called for, as has been the case in the Commonwealth.