EXCHANGE RATES

Poverty Bay Herald, Volume LV, Issue 17231, 10 April 1930, Page 6

EXCHANGE RATES

NO CREDIT RESTRICTIONS CHECK ON TRADERS Inquiry in commercial circles in Auckland did nut, elicit, any confirmation of Die belief, said to he held bv Wellington traders, that importers will have to face difficulties additional to the already Ibgh rates of ’exchange. The suggestion made in Wellington ras that ti": hanks are likelv to take the stand that unless a letter of credit- is established they will not continue the system under which an exporting firm in the United Kingdom can draw against a New Zealand importer for cash against documents. A representative of one of the large importing firms in Auckland said that no diliicullv had been experienced in eaiTvin:!' on their I usiness in the usual way. No restrictions' had been placed on ordinary trade transactions, hat banks were' not facilitating what mi'.rlit, Ik, c;d!ed pm civ o>.cliam;c transactions, the obvious purpose being to prevent Australian dealing's being carried old Uirniigh New Zealand. A hanker said he had not noticed any increase in the number uf .applications f„i* letters of credit such as would take place if that hacking of transactions were being demanded nl the oilier end. No scrutiny was being exercised to obtain letters of credit or other banking service. “It is not being done yet. hut o. course I ear.not say that it will not he done,” lie added.