LOSS BY BANK OF FRANCE
STERLING HOLDINGS FALL GOVERNMENT PAY £30,000,000 GOLD CONVERSION REFUND OFFICIALS’ EXPLANATION By Telegraph—Pr«s» Assn.—Copyright. Rec. 7.5 p.m. Paris, Dec. 8. An officially-inspired statement explains that the Government in repaying the Bank of France’s losses of £30,000,000 on sterling holdings is merely ensuring that the bank will not lose through following the Government’s policy; moreover, the bank cannot be permitted to bear alone the results of foreign decisions. It appears the bank bought a large amount of foreign currency, principally sterling, between August, 1’926, and June, 1928, to prevent a fall in the franc. It later wished to convert its holdings into gold, but the Bank of England protested that the London market could not face the sales. Eventually after the franc had been stabilised money flowed into France. The bank did not convert its sterling, with the result that after the fall of sterling the bank was left with £62,000,000 of depreciated currency. The bank will .be compensated by means of Treasury bonds repayable in 1945 and revised every six months according to the sterling rate.
The statement adds that in view of the nervousness of foreign markets it is essential the franc should be impregnable.
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Bibliographic details
Taranaki Daily News, 10 December 1931, Page 5
Word Count
201LOSS BY BANK OF FRANCE Taranaki Daily News, 10 December 1931, Page 5
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