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DIVISION OF I N T E R N A T I O N A L F I N A N C E
-
H. 13
KOAHD O F 3 0 V E R N 0 R S
'
X .
No. 139
V
. \
February 26, 196L.
CAPITAL MARKET DEVELOPMENTS ABROAD
I.
II.
I.
V
OF THE
Japan:
Japan
Nine Charts on Financial Markets Abroad
Money and Capital Markets in January-February
Japan has continued t o borrow s u b s t a n t i a l sums in Europe and t h e •
United S t a t e s in recent months. During January, Japan s u c c e s s f u l l y f l o a t e d i t s
t h i r d $25 m i l l i o n bond i s s u e i n Germany in D-marks; during February, an $11.5
m i l l i o n issue was f l o a t e d by the Japanese Government in Switzerland in Swiss
f r a n c s . Several a d d i t i o n a l borrowings in Europe are c u r r e n t l y being discussed,
both in European currencies and in U.S. d o l l a r s . In December, Japan's short-term
indebtedness to U.S. banks increased $l5L million (preliminary t o t a l ) . (See
Table 1 below). Since October, t h e r e have been no issues of Japanese s e c u r i t i e s
in the U.S. market.
Table 1.
Japan>
Short- and Long-Term Borrowings in the U.S.
Change during year
I960 >961 1962
1963
Bank l o a n s - /
Securities^/
1/
2/
a/
li80
722
30
512
58
780
212 £/397
200
lbl
353 £/597
I
1962
II III
250
-20
23
273
36
16
Change during period
1963
17
Iv
1
II III
"hi 29
55 27
. 8 56
11
5i
62
Oct. - Nov.
118 - 7 ^ 2 7 5 1I4 V 1 0 7 - / 15L
0
0
5 _5
8U 60 .
53 V28O 19 5 / m 5/15L
202
Short-term l i a b i l i t i e s to U.S. banks.
New s e c u r i t y f l o t a t i o n s .
Preliminary.
In January and February the Japanese balance of payments worsened sharply.
Reserves f e l l $23 million in January and $51 million i n February to $1,801 million,,
Reserves are now #121 million below t h e i r peak l a s t October. The current account
d e f i c i t in January, as measured on an exchange t r a n s a c t i o n s b a s i s , wais $157
m i l l i o n , the highest d e f i c i t in y e a r s . The seasonally-adjusted d e f i c i t on t r a d e
account (customs b a s i s ) was also extremely l a r g e in January. I t has been reported
t h a t Japan i s now considering t h e p o s s i b i l i t y of obtaining a $305 million stand-by
c r e d i t from the IMF.
OFFICIAL USE ONLY
(Decontrolled a f t e r 6 months)
Dec.
OFFICIAL USE ONLY
On t h e domestic s i d e , money market c o n d i t i o n s t i g h t e n e d moderately,
i n J a n u a r y and F e b r u a r y , and c a l l l o a n r a t e s i n c r e a s e d 0 . 7 3 p e r c e n t a g e p o i n t s .
The a v e r a g e i n t e r e s t r a t e f o r bank l o a n s and d i s c o u n t s t e n d e d t o s t a b i l i z e
d u r i n g t h e September-November p e r i o d f o l l o w i n g an e a r l i e r d e c l i n e . Commercial
bank c r e d i t r o s e l e s s r a p i d l y in December t h a n a y e a r e a r l i e r , r e f l e c t i n g i n
p a r t t h e i n c r e a s e i n commercial bank r e s e r v e r e o u i r e m e n t s i n mid-December. The
s t o c k market r a l l i e d s h a r p l y i n J a n u a r y / but t h e n d e c l i n e d s t e a d i l y d u r i n g
February.
Money m a r k e t . Money market c o n d i t i o n s were r e l a t i v e l y easy i n e a r l y
J a n u a r y , b u t d u r i n g t h e l a s t h a l f of J a n u a r y and F e b r u a r y t h e market g r a d u a l l y
t i g h t e n e d . A r e d u c t i o n of ¥350 b i l l i o n yen in bank n o t e s i n c i r c u l a t i o n i n
J a n u a r y h e l p e d t o i n c r e a s e bank l i q u i d i t y , b u t t h i s was more t h a n o f f s e t by
n e t T r e a s u r y r e c e i p t s of ¥292 b i l l i o n , and a r e d u c t i o n i n Bank of Japan l o a n s
and d i s c o u n t s , and government s e c u r i t i e s h o l d i n g s , of ¥ 2 1 and ¥292 b i l l i o n , •
respectively.
I n t e r e s t Rates. Call loan r a t e s eased sharply in e a r l y January with
t h e u s u a l r e t u r n of f u n d s t o t h e banks f o l l o w i n g , h e a v y consumer s p e n d i n g in
December. During t h e l a s t h a l f of J a n u a r y and t h e f i r s t t h r e e weeks of F e b r u a r y ,
c a l l l o a n r a t e s g r a d u a l l y i n c r e a s e d , The r a t e f o r u n c o n d i t i o n a l ( r e p a y a b l e a t
a d a y ' s n o t i c e ) c a l l l o a n money i n c r e a s e d from 7 . 3 p e r cent on J a n u a r y lU t o
8 . 0 3 n e r c e n t on F e b r u a r y 3, and remained t h e r e t h r o u g h F e b r u a r y 22. Other c a l l
l o a n r a t e s a l s o r o s e 0 . 7 3 p e r c e n t a g e p o i n t s d u r i n g t h e same p e r i o d *
'The average i n t e r e s t r a t e f o r bank l o a n s - a n d d i s c o u n t s c o n t i n u e d t o
remain a t 7.68 p e r c e n t i n November, t h e same l e v e l as in t h e p r e v i o u s two
months, (See Table 2 ) . The s t e a d y d e c l i n e in t h e r a t e , which f i r s t began i n
November of 1962, h a s t h u s been h a l t e d , and w i t h t h e i n t r o d u c t i o n of t i g h t e r
c r e d i t c o n t r o l s i n r e c e n t months, t h e r a t e i s l i k e l y t o remain s t e a d y or p o s s i b l y
rise.
Table 2.
Japan:
Average Monthly I n t e r e s t Rate on Bank Loans and D i s c o u n t s
March
June
September
December
TJ
November.
-
1959
I960
1961
1962
1963
8,18
8.28
8.06
8.11
8.21
8.22
8.11:
8.08
7.92
7,88
8.00
8,20
8.22
. 8.23
8.2k
8.09
7.9?
7.75
7.68
7.682/
~
Bank l o a n s and d i s c o u n t s . Sank c r e d i t i n c r e a s e d 1 . 9 p e r c e n t i n
December compared t o 2 . 5 o e r c e n t a y e a r - e a r l i e r . T h i s slower r a t e of i n c r e a s e
r e f l e c t s i n o a r t t h e i n c r e a s e i n commercial bank r e s e r v e r e o u i r e m e n t s e f f e c t i v e
December 16, 1963. During t h e y e a r as a whole, bank c r e d i t ( a s measured by
l o a n s , d i s c o u n t s and s e c u r i t i e s ) i n c r e a s e d 2b n e r c e n t compared t o 17 p e r c e n t
i n 1962.
OFFICIAL USE ONLY
OFFICIAL : y 1
In December, bank loans and b i l l s discounted i n c r e a s e d 3.it and 3 . 3
per c e n t , r e s p e c t i v e l y , while s e c u r i t i e s h o l d i n g s declined 6 , 3 per c e n t . Bank
d e n o f i t s r o s e 5.L o r c e n t as a g a i n s t 5.9 per cent a year e a r l i e r .
During the f o u r t h c u a r t e r , bank c r e d i t r o s e 5.8 per c e n t , s l i g h t l y
lower than the 6 . 2 p^r cent, a y e a r e a r l i e r . As i n d i c a t e d in Table 3 below,
bank d e p o s i t s i n c r e a s e d 6,It p ir cent compared t o 8 , 2 p<=r cent a year e a r l i e r .
Table 3.
Japan:
Q u a r t e r l y Changes i n Deposits & P r i n c i p a l Assets of Commercial Banks
( i n b i l l i o n s of yen)
Deposits
Per
Cent
Change
Per
Cent
Change
Bills
Discounted
Per
Cent
Change
Securities
Per
Cent
Change
1961
I
II
III
IV
+502
+169
+359
+U30
5.7
1.8
3.8
ii.3
+326
+206
+216
+232
5.9
3,5
3.6
3.7
+ 1*8
+133
+206
+220
1.8
h.9
7.3.
7.2
+103
+ioh
+ 13
+122
6.8
6.h
2.5
6.9
1962
I
IT
III
IV
+ 128
+ 61
+678
+920
1.2
0.6
6,1;
8.2
+256
+181
+223
+585
3.9
2.7
3.2
8.2
+ Hi
. +108
+213
+115
O.lt
3.3
6.3
h.O
- 6k
+258
+ hi
+ 71
-3.il
lii.l
2.0
3.3
1963
I
II
III
IV
+1,1#
+105
+1,019
+9k7
8,8
3.1
7.h
6.I4
+717
+365
+52L
+589
9.3
U.3
5.9
6.3
+185
+150
+215
+#3
U.9
3.8
6,0
6.8
+ 27
+ 73
lh
+ Ll
1.2
3.3
0.6
1.8
+
The p r o p o r t i o n of bank loans and d i s c o u n t s extended f o r purchases of
eouipnvmt in December was 16.6. p e r c e n t . This i s lower than the 16.8 per cent
r e g i s t e r e d i n October and November, but h i g h e r than t h e 1 6 , 3 per cent in March
wHch was a low f o r the y e a r .
CORRECTION; I t was e r r o n e o u s l y r e p o r t e d in t h e previous c a p i t a l market
r e o o r t t h a t t h e Bank of Japan would extend 10 p-ir cent l e s s i n c r e d i t t o 13 l a r g e
c i t y banks during the f i r s t q u a r t e r of I96I1 than i t did a year e a r l i e r . In
a c t u a l i t y , t h e Bank of Japan, through i t s "window guidance' 1 o p e r a t i o n s , w i l l
attempt t o l i m i t t h e c r e d i t expansion of t h e 13 l a r g e c i t y banks in t h e f i r s t
c u a r t e r of I96I4 t o an amount 10 p^r cent l e s s t h a n a year e a r l i e r . This i s
expected t o amount to ¥?33 b i l l i o n , or 2.8 per c e n t of the o u t s t a n d i n g loan
balance of these banks a t the end of 1963, In a d d i t i o n , t h e Bank of Japan
r e p o r t e d l y w i l l h e r e a f t e r s e t Quarterly l i m i t s , the i n c r e a s e t o be .set a t a
f i x e d percentage of t h e loan i n c r e a s e in t h e previous q u a r t e r .
OFFICIAL USE ONLY
Bond market. New i s s u e s of domestic bonds reached a high f o r t h e year
in December, t o t a l i n g ¥165 b i l l i o n . This was ¥?7 b i l l i o n h i g h e r than i n March,
October and November w^en t h e monthly i s s u e s each t o t a l e d ¥138 b i l l i o n . Most of
t h e o r i s e was due t o new i s s u e s of n u b l i c c o r p o r a t i o n debentures which i n c r e a s e d
from ¥27 b i l l i o n in November ¥L6 b i l l i o n i n December. Burin? December, ¥19
b i l l i o n of t h e s e new i s s u e s were ourchasec by t h e government 1 s S p e c i a l Account
f o r Post O f f i c e L i f e Insurance and P o s t a l A n n u i t i e s . Bank debentures a l s o rose
from ¥83 b i l l i o n i n November t o ¥91 b i l l i o n in "ecember and i n d u s t r i a l debentures
from ¥27 b i l l i o n t o ¥2? b i l l i o n .
Average y i e l d s in December on l o c a l government s e c u r i t i e s , p u b l i c
c o r p o r a t i o n bonds, and one-year.bank d e b e n t u r e s , remained unchanged from l e v e l s
e a r l i e r in the year a t 7.35ii, 7.053, and 6,?2h p e r c e n t , r e s p e c t i v e l y . Yields
on longer-term bank debentures were up s l i g h t l y from t h e November l e v e l t o
7.28It per cent and i n d u s t r i a l bonds, which had been f l u c t u a t i n g s l i g h t l y e a r l i e r
in t h e y e a r , remained a t 7.^88 p e r cent in both November and December,
Stock m a r k e t . ' A f t e r r i s i n g 10 per cent i n J a n u a r y , stock p r i c e s , g e n e r a l l y d e c l i n e d during February. From the y e a r ' s high of ¥1,338 reached on
January 29, t h e Dow Jones average d e c l i n e d t o ¥1,25li on March 2, a drop of 6
o ; n\ c e n t . (See Table L below).
2xcept f o r the January r a l l y , the general
t r e n d of the market has been down s i n c e A p r i l of l a s t y e a r ,
Table b.
Japan:
Dow Jones Average of 22$ Stocks, F i r s t Section of Tokyo
Stock Exchange
December 28
January
1/
6
13
20
27
February
l,?5?
1,317
1.32L
March
3
10
17
?h
¥1,305
1,286
1,280
1,261
2
1963
High
Low
%l,63k
¥1,201
1961
High
Low
¥1,338
¥1,201
Last t r a d i n g day of 1963.
Foreign t r a d e . J a p a n ' s s e a s o n a l l y a d j u s t e d t r a d e d e f i c i t worsened
s h a r o l y in January r i s i n g t o $21*6 m i l l i o n . Compared t o December, imports were
up 10 per cent and e x p o r t s were o f f 11 p e r c e n t . The January d e f i c i t i s subs t a n t i a l l y h i g h e r than t h e average monthly d e f i c i t of Sl5k m i l l i o n i n the f o u r t h
q u a r t - r and a t a s e a s o n a l l y a d j u s t e d annual r a t e , t h e d e f i c i t i s j u s t under $3
b i l l i o n . The t r a d e f i g u r e s (monthly, or monthly a v e r a g e s , on a customs b a s i s )
i n Table 5 below are based on s e a s o n a l adjustment f a c t o r s computed by t h e Board
of Governors of t h e F e d e r a l Reserve System.
OFFICIAL USE ONLY
OFFICIAL USE ONLY
Table 5.
Imports
Exports
,
Trade Balance
I
1962
II
h9l
378
L68
U08
-116
- 60
Japan:
-5>-
Seasonally Adjusted Foreign Trade
( i n m i l l i o n s of d o l l a r s )
" TI
IV
162
_h28
b.6h
U19
- ?li - 99
1963
III
rT
Nov,
5U5
hh2
$82
I462
61i3
637
U78
630
J00
690
uuu
- 73 -103
-120
-l5h
-159
-130
-2U6
I
188
II
Dec.
196U
Jan.
In mid-February t h e Japanese c a b i n e t approved a new program of s p e c i a l
t a x p r i v i l e g e s t o promote e x p o r t s . Since the o r e s e n t exoort income exemption
system, which has served as a stimulus to e x p o r t s , i s scheduled to e x p i r e on
March 31, 1961;, t h e Government has been anxious to enact a new program t o maint a i n export i n c e n t i v e s . In b r i e f , t h e new program would: (1) i n c r e a s e t h e
' e x i s t i n g d e p r e c i a t i o n allowances f o r e x p o r t i n g i n d u s t r i e s ; ( 2 ) provide t a x
advantages from s p e c i a l r e s e r v e funds e s t a b l i s h e d t o develop overseas markets;
(3) allow f i r m s t o s e t a s i d e as r e s e r v e s , and r e g i s t e r as l o s s e s , amounts up t o
one-half of p r i v a t e investments i n underdeveloped c o u n t r i e s ; and (1+) expand t h e
p r e s e n t t a x exemptions allowed f o r income received from p r o v i d i n g t e c h n i c a l
assistance overseas.
Foreign r e s e r v e s and c a p i t a l f l o w s . I n t e r n a t i o n a l r e s e r v e s . i n February
f e l l f o r the f o u r t h s t r a i g h t month d e c l i n i n g by
m i l l i o n t o $1,801 m i l l i o n .
The t o t a l d e c l i n e s i n c e l a s t October amounts t o $121 m i l l i o n .
The balance of payments, as measured on an exchange t r a n s a c t i o n s b a s i s ,
r e g i s t e r e d a whopping c u r r e n t account d e f i c i t of $15>7 m i l l i o n in January. The
l a r g e s t c u r r e n t account d e f i c i t during t h e l a s t balance of payments c r i s i s
t o t a l e d : $lb7 m i l l i o n in June of 1961. The January f i g u r e r e s u l t e d from a
d e f i c i t of $132 m i l l i o n f o r commodity t r a d e and $25 m i l l i o n f o r s e r v i c e s . Net
long-term c a o i t a l payments were only $1 m i l l i o n , but net s h o r t - t e r m c a p i t a l
r e c e i p t s we're $163 m i l l i o n , t h e h i g h e s t i n many y e a r s . Since r e s e r v e s f e l l $23
m i l l i o n , while recorded n e t r e c e i p t s t o t a l e d $5> m i l l i o n , e r r o r s and omissions of
$28 m i l l i o n accounts f o r t h e d i f f e r e n c e .
According t o p r e l i m i n a r y d a t a , Japanese s h o r t - t e r m l i a b i l i t i e s to U.S.
banks i n c r e a s e d $1$L m i l l i o n in December t o $2,137 m i l l i o n . (See Table 7 below).
The i n c r e a s e r e f l e c t e d p r i m a r i l y a r i s e in commercial acceptances and s h o r t - t e r m
loans to banks. ^Hiring 1963, Jaoanese borrowing i n c r e a s e d $397 m i l l i o n compared
to $212 m i l l i o n a . y e a r e a r l i e r .
OFFICIAL USE ONLY
OFFICIAL USE ONLY
Table 7,
Jan.
Feb.
19#
168
1960
36?
1961
875
1962 1,601
1963 1,697
Mar,
-6-
Short-term Claims by U.S. Banks on Japan
( i n m i l l i o n s of U.S. d o l l a r s )
*
Apr.
175
22k
201
h20
3722$0
952 1,069 1,159
1,685 1,776 1,775
1,691 1,751 1,876
May
June
July
Aug.
Sept.
2k2
L88
1,196
1,762
1,896
#0
L67
1,272
1,758
1,869
2#
#6
l,3ll
1,765
1,872
269
6#
1,335
1,767
1,793
Oct.
#2
262
6#
#3
1,288 1,281
1,711 1,710
1,862 1,876
r
Dec.
Nov.
275
711
321
806
1,292 1,528
1,662 / I , 7 1 0 ,
1,983^2,137^
NOTE: Data f o r -1962 and 1963 have been r e c e n t l y r e v i s e d and include $52 m i l l i o n reported
by b a n k s . i n i t i a l l y as of December 31, 1961.
Preliminary,
a/
Japan continued to borrow i n European c a p i t a l markets, f l o a t i n g a $25
million bond issue in Germany in January and a $11,5 million i s s u e i n Switzerland
in February, Borrowings since e a r l y 1962 now t o t a l $127.5 m i l l i o n . (See Table 8
below), During I96I4, Japan w i l l r e p o r t e d l y borrow about $150 m i l l i o n in European
c a p i t a l markets. .
Table 8.
Japan:
Long-term Borrowings in Europe Reported in F i n a n c i a l Press
Month
Floated
Capital
Markets
Borrower
Amount
Bank of Tokyo
$ 7.0 m.
J a n . 1962
Two 5 - y r . c r e d i t s
from 3 Swiss banks a t
5-l/a - 5-3/1$ in
Sw f r a n c s
Switz.
Osaka City and
Prefecture
$25.0 m.
Feb. 1962
6-1/2% DM bond i s s u e
Germany
Osaka City and
Prefecture
$25oO m.
March I963
6-1/2% DM bond i s s u e
Germany
£ 5 mill.
Aug. 1963
6% US d o l l a r , 20-25 y r s . ,
conservation of 1899
bond i s s u e
U.K
Takeda Chemical Co. $15=0 m.
Dec. 1963
6% US d o l l a r , 20 y r .
c o n v e r t i b l e debentures
Luxembourg
Canon Camera Co.
$ 5=0 m.
Dec. 1963
6-1/1# US d o l l a r , 15 y r .
c o n v e r t i b l e debentures '
U.K.
Osaka City and
Prefecture
$25.0 ITU
J a n . 196L
6-1/2% DM, 15 y r . bond
issue
Germany
l
Gov t e of Japan
($llu5 m.)
Terms
Gov't of Japan
5.5#, Sw francs, 10-15yrs. Switz.
$11.5 mo
Feb. 196U
a7 Although t h i s l i s t i s b e l i e v e d t o be complete,some i s s u e s may have been omitted.
OFFICIAL USE ONLY
OFFICIAL USE ONLY
Recently r e l e a s e d d a t a on o f f i c i a l l y approved f o r e i g n investment i n
Jaoan show a s u b s t a n t i a l j r i s e i n loans t o Japan d u r i n g 1963 compared t o 1962.
The d s t a below, in m i l l i o n s of d o l l a r s , i n d i c a t e t h a t t o t a l loan approvals
i n c r e a s e d from $277 m i l l i o n in 1962 t o $525 m i l l i o n in 1963.
- 1961
1962
1963
Total acquisition of stocks:
of which, through the market
other
112
( U7)
( 6k)
125
( 83)
( 12)
236
(lo5)
(131)
Loans ("acquisition of claimable assets'1)
'38L
277
525
51
136
182
Bond issues floated abroad f/
Other
TOTAL
a/
553
1
5
539
918
Reportedly excludes government s e c u r i t i e s and l o c a l government s e c u r i t i e s ,
but i n c l u d e s i n d u s t r i a l bonds, bank bonds, and p u b l i c c o r p o r a t e bonds.
Foreign exchange. A f t e r s t r e n g t h e n i n g l a t e i n December and t h e f i r s t
h a l f of J a n u a r y , t h e yen g r a d u a l l y weakened in t h e spot market during the r e s t
of January and remained depressed during t h e f i r s t h a l f of February. The r a t e ^ _
in t h e three-month forward market remained s t e a d y during January and t h e f i r s t h a l f of February. The weakening in the s o o t market caused the forward d i s c o u n t
t o d e c l i n e from 1.03 per cent on January 9 to .22 p e r c e n t at t h e end of
January and t h e discount remained a t t h a t l e v e l through mid-February. (See
Table 8 below).
Table 8 .
Jaoan:
Customer's T.T. Exchange Rates of Bank of Tokyo, i n Tokyo
Yen-dollar
spot middle
rate
Dec. 31
361.70
Jan.
h
10
17
2h
31
361.90
361.70
362.15
362.15
362.30
7
15
362.30
362.30
Feb.
Three-month
forward middle
rate
.
362.18
.86
362.18
362.1,8
362.50
362.50
362.50
.6U
.86
.39
.39
.22
362.50
362.50
.22
.22
' A s i a , A f r i c a and L a t i n America S e c t i o n .
Forward discount
in per cent
oer annum
OFFICIAL USE ONLY
Chart 1
INTERNATIONAL
3-MONTH
MONEY
EURO-DOLLAR
W«dn»< joy liq uiei
MARKET
DEPOSIT
YIELDS
FOR
U.S.
VS. CERTIFICATE
|
DOLLAR
OF
INVESTORS
DEPOSIT
Per t e nl
YIELDS
E U B O - D O U A B DEPOSIT
-
u
\n—
-
—
1
CERTIFICATE 0 1F D E P O S I T
J i
DIFFERIENTIAL:
U.S.
' X ;
NEW
YORK
OFFER
RATES
ON
C E R T I F I C A TE
v f l
SELECTED
TREASURY
COMMERCIAL
CANADIAN FINANCE COMPANY
I
vr
- 1
1
1r
EUI R O - D O L L A R O V E R
OF
DEP OSIT
u r ,
1
3-MONTH
BILLS- F u l l y
<\r
•
1
INVESTMENTS
H e d g e d
PAPER-Fully
H e d g e d
1
1
1
1
INTEREST A R B I T R A G E ,
1/
3-M ONTI
UNITED STATES /
CANADA
1
T R E A S U R r BILL R A T E S
-
.
-
-
-Z/V
- Z " v
I |
1 1
I |
1 1
RATE D I F F E R E N T I A L
1 1
AND
1 1
1 1
FORWARD
11
11
11
CANADIAN
11
11
11
111
11
11
DOLLAR
S P R E A D IN F A V O R OF C A N A D A +
+
RATE
DIFFERENTIAL^ WITH
FORWARD
EXCHANGE^ C O V E R ^
N E T I N C E N T I V E IN F A V O R O F C A N A D A
.Li.
M
J
1961
_L
i
:
S
+
111!
D
M
I
1962
S
Ll i I
D
1963
1964
L l i I.I
Y>
INTEREST
ARBITRAGE,
NEW
Y O R K / L O N D O N
F r i d a y figi
3-MONTH
TREASURY
BILL
RATE
DIFFERENTIAL
AND
RATE
DIFFERENTIAL
WFTH
1961
RATES
3-MONTH
FORWARD
1962
FORWARD
STERLING
EXCHANGE
COVER
1 963
1964
Ch.O-L!_!_
,
INTEREST
Friday
ARBITRAGE
FOR
GERMAN
COMMERCIAL
BANKS
figures
3-MONTH
EURO
Per cenf
TREASURY
DOLLAR
BILLS,
DEPOSIT
INTERBANK
LENDING
RATE
RATES
EURO-DOLLAR LONDON
i
RATE
r™
DIFFERENTIAL
i
AND
i
FORWARD
i
i
DEUTSCHE
MARK
S P R E A D IN F A V O R OF F R A N K F U R T :
F O R W A R D RATE D I S C O U N T ( - )
TREASURY
T:::T
RATE
DIFFERENTIAL
WITH
r
FORWARD
r
~t
EXCHANGE
COVER
IN F A V O R OF F R A N K F U R T ( + )
NET I N C E N T I V E :
BILLS
I
\
INTERBANK LOAN RATE/
\ ^ J
AND
per
annum
SHORT-TERM
INTEREST
RATES *
... -
1162
SWITZERLAND ...
LONG-TERM BOND
YIELDS
INDUSTRIAL
^
STOCK
INDICES
i ? 5 « =»op.
Kotio «col«
SWITZIKUIM\*
r
V
^
V
i _
v\
—sy
$
1 i i i i i i i i i i i
1 1 II II II II 1 i r i i i i i i i i i
1961
New series Swm Bank Cor por oi ion Hid u tl« iul M o c k i n d e »
J a p a n : i n d e * oi 2 2 5 i n d u s t r i a l u n d o t h e r -.M.fki Ir u d c d o n l In- T o k y o ( • u i m n g e
i i i II i i i i M
SPOT EXCHANGE
RATES - M A J O R
CURRENCIES AGAINST
U.S.
DOtlAR
p., e n .
Abovi poT
Below p a r
Above
FRENCH FRANC
CANADIAN D O U A R ~ ,
1. L1.1....L . J
par
3-MONTH
FORWARD
EXCHANGE
RATE
Friday figures
AGAINST
U.S.
DOLLARS
IGERMAN MARK
5 5 5 ^
AGAINST
POUND
STERLING
- LONDON
1
PRE MIUM +
-
-
M^
' —
V
-
-
ii
-
-
1 1 1 1 1 1 1 1 1 1 1 Tf
AGAINST
POUND
STERLING
.
L J
11 11 11
- LONDON
PREMIUM +
FRANC
1962
1963
1964
1
I
@FedFRASER