Trade Statistics Reflect Exchange Rate Alteration

Otago Daily Times, Issue 26958, 18 December 1948, Page 8

Trade Statistics Reflect Exchange Rate Alteration

PA WELLINGTON, Dec. 17. The appreciation of the exchange rate in August was reflected for the first time in trade statistics released by the Minister of Finance, Mr Nash. The figures relate to the first nine months of 1948 and comparison with the similar periods of 1946 and 1947 are given.

From January to August, 1948, total exports were valued at £ll2, 231,000 and total imports £88,042,000. Under the new rate of exchange from August 20 to the end of September exports amounted to £12,771,000 and imports £11,736,000. The excess of exports over imports for the whole nine months stood at £25,224,000 —over double the figure for the similar period last year. The value of exports for the first nine months of this year is approximately 23 per cent, greater than for the similar period in 1947. The value of the imports is about 10 per cent, higher. Mr Nash commented that it is possible to make some preliminary observation on the effect of the alteration of the exchange rate. “ For August and September, 1948, the total export income amounted to £20,784,000. Though a large proportion of this figure includes values at the new rate of exchange it is still substantially higher than the value of the exports for August and September, 1947 £16.728,000. While it is not possible to draw any definite conclusion from this fact it seems to confirm that the appreciation of the exchange rate will not have any undue effect on the total domestic income derived from exports.”

A table issued with the Minister’s statement gives the following totals for the nine-monthly periods in the years stated, the figures in parentheses indicating the value converted to the exchange rate applying prior to August 20 (all in thousands):—

1948: Exports, £125,002 (£128,195): imports, £99,778 (£102.712); excess of exports £ 25,224 (£ 25,483). 1947: Exports, £101,376; imports, £89,346; excess of exports, £12,030. 1946: Exports, £75,961; imports, £52,746; excess of exports, £23,215. The figures before and after the alteration in the, exchange rate are given as follows (in thousands): — July 1 to August 19: Exports, £19,724; imports, £16,868; excess of exports, £2856. August 20 to September 30: exports, £12.771; (£15,964); imports, £11,736 (£14,670); excess of exports, £1035 (£1294). The above values for exports include the re-exports of goods not being produced in New Zealand.