EXCHANGE RATE MAY FALL

Taranaki Daily News, 6 October 1931, Page 14

EXCHANGE RATE MAY FALL

AUSTRALIAN POUND APPRECIATES. London, Sept. 24. An early adjustment of the exchange rates between Australia and London m now tho subject of negotiations between English and Australian banks. Australian banks, it is stated, favour the idea of bringing the Australian pound into real relation with sterling, and an announcement on those lines is expected shortly. Pointing out that the Australian pound in relation to sterling has appreciated considerably, London banks are being asked why the apparent anomaly exists of a 25 per cent, discount on Australian pounds. The actual discount, financiers declare, should fall to about 10 per cent. Huge sums of British money, it is pointed out w await transfer from Australian banks, but the present rate of discount prevents withdrawals. Americans also have big sums in Australia, and British financial circles consider that the United States, therefore, holds an important key to the situation. It ia even possible that the exchange between Australia and England may be maintained until an intimation of the attitude of America is received.