THE EXCHANGE RATE
A FINANCIAL TUG-O’-WAR.
(By Telegraph.—Press Assn.—Copyright.) (Australian and N.Z. Cable Association.)
LONDON, May 7.
The Financial News says that the cut in the Australian rates of exchange are more drastic than the most sanguine could have expected. It is apparent that a tug-o’-war has been going on between the Commonwealth Bank and the trading banks. The former, with an eye on £68,000,000 of loan money falling due this year in Australia, wanted a coup de grace immediately to a high remittance premium and apparently its wishes have prevailed. The Morning Post, in the course of an article, welcomes the lowering of the Australian rates in view of the extent to which the Australian exchange must be affected by the large Australian loans, being raised in London. It is high time that there should be an easing of the position as regards ordinary remittances. Now that both Australian and Britain are on the Gold Standard there is a greater need for preventing unnecessary transfers of gold when ordinary fMi&ties dbouid suffice -
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Bibliographic details
Southland Times, Issue 19546, 9 May 1925, Page 9
Word Count
173THE EXCHANGE RATE Southland Times, Issue 19546, 9 May 1925, Page 9
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