£2 10/- RISE IN EXCHANGE

Taranaki Daily News, 29 January 1931, Page 4

£2 10/- RISE IN EXCHANGE

PREMIUM FOR PRODUCERS - ANNOUNCEMENT MADE BY BANKS * ~ a RESTRICTIONS PUT ON IMPORTS, The rates of exchange of New Zea* land on London were raised £2 10s each way by the Associated Banks yesterday, according to advice received in Ncav Plymouth at mid-day. One immediate result is that the banks in Ncav Zealand will be giving the dairy companies an additional premium of £2 10s for every £lOO worth of Butter and cheese shipped to England. The new rates are as follows:—* Buying: On demand, £lOB 10s, 3 days £IOS 8s; 30 days, £108; GO days, £lO7 10s; 90 days, £107; 120 days, £lO6 10s. Selling: Telegraphic transfer, £110; demand drift, £lO9 7s 6d; 30 days, £109; €0 days, £lOB 12s 6d; 90 days, £lOB ss.

In short, the neAV rates of exchange mean that it will now cost £9 7s 6d to • transfer £lOO -from New Zealand to London, payable on demand. It is' stated that the rates have been ■ raised to stimulate funds in London". The banks operating in New Zealand accumulate funds in London from the sale of butter, avool and cheese and use these funds to pay for imports and the indebtedness on Government and other, loans, which is considerable. The raising of the rate will still further restrict imports into New Zealand from England and Europe. And although under the gxchapge rates the primary producer will receive a bigger premium from the banks on the shipment of his products to London he will have to pay higher prices for his imports.

The exchange rates on Australia also have been amended. They now are: Buying, £ll4 2s 6d; selling, £ll3 12s 6d,