EXCHANGE PURCHASE

Waipukurau Press, Volume XXVIII, Issue 31, 28 January 1933, Page 5

EXCHANGE PURCHASE

APPOINTMENT OF AGENT

BANK OF NEW ZEALAND TO ACT

The Bank of New Zealand is to act as the Government’s agent*

in future dealings in exchange, handling all accumulated credits which accrue in London while the rate is fixed by the Government. This provision is made in the Banks Indemnity (Exchange) Bill : which was introduced in the House of Representatives yesterday. In addition the bank are guaranteed against losses arising out of exchange surpluses. The Bill is entitled “An Act to insure the several banks carrying on the business of banking in New Zealand against losses that they may sustain by reason of the fixation, at the request oi the Government, of the rates of exchange on London and arising from the purchase and sale of exchange." The .interpretation clause defines the standard exchange rate as the rate for the telegraphic transmission of moneys from New Zealand to London, which was in force prior to January 20 last. The fixed exchange rate is defined as the rate fixed by the banks and in force at the passing of the Act for the telegraphic transmission of moneys from New Zealand to London, and includes any rate intermediate between the standard rate and the rate in force at the passing of the Act, that may be hereafter fixed by the banks at the request of the Government. Powers of the Agent Clause three constitutes the Bank of New Zealand the agent of the Government for the buying and selling of exchange on London for the purposes of the Bill. The provisions of the

Bill, insofar as they confer rights or impose obligations on the banks carrying on business in New Zealand, shall apply with respect to the Bank of New Zealand in its ordinary capacity as they apply to the other such hr 7 ks.