Exchange Rate.

Star (Christchurch), Volume LXVI, Issue 20361, 19 July 1934, Page 8

Exchange Rate.

To be Maintained

Will be Unchanged for Long Period.

Per Press Association.

WELLINGTON, July 19. THERE will be no change in the present exchange rate on London for a long period, according to a statement issued by the Reserve Bank Board last night. The statement is as follows: —

“In order to dispel the existing uncertainty with regard to the rate cf exchange on London, the Reserve Rank of New Zealand announce that in the absence of unforeseen developments in the meantime the following rates will be fixed on August 1. in accordance with the terms of Section 16 of the Reserve Bank of New Zealand Act. 1933:

“(1) Rate at which sterling will be given for immediate delivery in London in exchange for Reserve Bank notes—£l2s, New Zealand, equals £IOO, London.

“(2) Rate at which Reserve Bank notes will be given in exchange for gold or for sterling for immediate delivery in London —£l24, New Zealand, equals £IOO, London. “ The Reserve Bank will aim at retaining these rates unchanged for a long period, unless there should be a marked alteration in existing conditions. “ To assist in achieving this measure of stability the Reserve Bank will be prepared to enter into foiward exchange contracts with trading banks. The Reserve Bank do not wish to compete for exchange business in the ordinary course, provided adequate facilities are available elsewhere, although they will, of course, be prepared to fulfil their statutory obligations, as indicated above, if requested to do so. The trading banks will be free to formulate their own exchange policy and to fix their own buying and selling lates for London funds. “ Sterling funds held in London by the Reserve Bank from time to time should be regarded as ultimate' monetary reserves of the Dominion for use in case of need.”