N.Z. CRITICISED.

Star (Christchurch), Volume LXIV, Issue 911, 4 November 1933, Page 1

N.Z. CRITICISED.

Currency Undervalued Seriously. United Press Assn.—By Electrte Telegraph—Copyright. LONDON, November 3. The “ Financial News,” in a leading article, says that unity and proper coordination of Empire currencies stand in the forefront of the British official monetary policy, but the fact that Imperial exchanges are so much out of balance militates against serious attempts to create appreciable co-ordina-ticn of the levels. The Australian exchange rate, the article continues, still appears to be justified, but the same cannot be said of New Zealand, whose currency is seriously undervalued, though less so than that of South Africa. Any co-operative policy would have to follow one of three main objectives. One would be adjustment of internal conditions to the prevailing exchange rates. The second would be a gradual effort to bring the Australian and New Zealand exchanges to parity, the sentimental value of which would provide the strongest chance of enduring stability. The third would be an adjustment of the rates so that they would honestly reflect the economic strength of the countries concerned. The leading article adds there is no doubt that the discount of the New Zealand pound is too wide, but New Zealand will not give up the idea that she must have the same discount as Australia.