RESERVE BANK

Wanganui Chronicle, Volume 84, Issue 5, 6 January 1940, Page 3

RESERVE BANK

Decrease in Sterling Exchange STATE ADVANCES HIGHER FURTHER RISE OF 4.955,000 A decrease of £168,985 in the sterling exchange funds of the Reserve Bank of New Zealand brings the total down to £7,036,750. Advances to the State for "other purposes” have increased by another £955,000 to the record high level of £20,230,000. The note issue at £19,184,088 has declined £108.037 from the record high level of Christmas week. The bank’s statement of assets and liabilities as at the close of business ofi Monday, January 1, is as follows: Liabilities.

Exprc.-.-ed in New Zealand currency. Proportion of reserve (No. 7 less No. 5‘ to notes and other demand liabilities, 27.941 per cent., compared pared with 32.200 per cent, on December 2a. The reserve on Monday totalled £9,825,964, compared with £11.003,1)63 on December 25, a decreesJ of £1,677,999. A year ago the reserve was £6,806,060. Sterling exchange funds on Monday amounted to t <',036,73-), compared with £8,717,735 un Dumber ya, a decrease of £1,680.985. Liabilities in currencies other than New Zealand currency on Monday tota’l.-.n 112,62 a (a decrease of £2985). thus making •'<s £7,024,12a. compared with £8,702 124 on December 2a, a decrease oi £1,677,999. A year ago the bank's net overseas assets amounted to £4,u-’> I 277, and on January ' 1938, th*. totalled £16.414,909. Gold remains unchanged at £2.801,S.’i'j. Subsidiary coin totals £156,051. an increase of £6lB. Advances to the State Marketing Department on Monday amounted to £3.375,019, a decrease of £5981. Yet another high record is set by ihe advances to the State tor other purposes, a further major increase of i95d.0U0 bringing the total up to £20.230,000. Investments at £3,558,038 show an increase of £199,971. Other assets tola! £227,132, a decrease oi £10f,U99. The note issue on Monday totalled £19.184,088, a decline of £108,037 from the record high level of Christmas week. A year ago the note issue totalled £16,494,890. Demand liabilities to the State total £2.604.130, a decrease ot £255,782. The trading banks' reserve balances at £13,334,404 show a decrease of £211,043. Other demand liabilities total £ ’>5,784, an increase of £7432. Other liabilities total £713,797, a decrease ol £68.060. The statement balances at £37,384,82’9, a decrease of £638,476. Movements in Sterling Exchange movements in the sterling exchange held by the Reserve Bank of New Zealand during the last lew months and in the ratio percentage of reserve to notes and other demand liabilities, are shown in the following table:—

X £ r. 1. General Res. fund 1,300,000 □ Q 2. Bank notes 19.184,088 0 0 Demand liabilities— ■ State ‘*,604 130 «> o <b> Banks 13,334,404 3 uj Othei 35,784 9 1 L Time dcpo.-its — *?. Liabilities in curicncics other than N.Z. currency ... 12,625 7 o 6. Other liabilities . 713,797 J 1 £(N.Z.)37,384,829 7 2 Assets 7. Reserve— s d (a) Gold 2,801,839 0 0 ’(b) Sterling exchange 7.036.750 3 1 (c> Gold exchange — 8. Subsidiary coin 156,051 R 9. Discounts— (a) Commercial and agricultural bills - - — tb) Treasury and local body bills - 10. Advances — la) To the Slate or State undertakings; Products MarI keting Department 3,375,019 o 9 •2) For other purposes 20,2303 m k) 0 0 lb) To other public authorities <c.» Other 11. Investments 3,558,038 0 10 12. Bank buildings — 13. Other assets 227,131 13 10 ,EiN.ZJ37,384,829 7 2

exchange. ratio 1937. (N.Z.) per cent. December 27 16,992,748 70.323 1938. August 29 13.695.UOO 67.2 September 26 ..... 11,449,447 60.785 October 31 7,707,697 46.09 November 28 4,828,302 32.685 December 26 4,678,233 27.882 1939. January 30 4,133,586 25-i J February 27 .... 4.839,555 25.799 March 27 4.659.874 25.419 April 24 4,629.061 25.11 Mav 29 4.564.206 25.13*6 June 26 . 5,600.692 30.249 J uh 31 5.576,957 ■,s • .■»' August 28 .. 5,690,208 23.112 September 25 . 5,311,680 25.822 October 30 5,743,087 25.367 November 20 ... .. 7,543,770 30,624 November 27 — 6,624,585 28.477 December 4 5,961,673 26.634 December 11 . 6,204,734 26.933 December 18 8,273,056 32.379 December 25 .... .. 8,717,735 32.200 January 1 7,036,750 27.947 The statutory serve ratio is 25 minimum ol per cent. tiie re-