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INTEREST & EXCHANGE RATES FOR MAJOR COUNTRIES & THE US. OF owns TABLE OF CONTENTS PARTI. EXCHANGE RATES AM) GOLD PRICES Chart 1A and B - Spot Exchange Rates, Mpjor Currencies igiiirt U.S. Dollar Chart 2A and B - 3 Monii Forward Exchange Rates, Major Currencies against U S. Dollar Chart 3A and 8 - 3 Moo* Forward Exchange Rates, Major Currencies against U X M Chart 4 - Gold Price in London PART II. SHORT-TERM INTEREST RATES Chart 5 Call Money Rates ChartfrAand B - London Ewro-S Deposit Rates Chart 7A and B - New York - U * a n : Yields on U.S. Doll# Funds Chart #A and B -Undo*: Couewd YieWk * U.S. Drtim F«m* Chart 9A and B - Interest Arbitrage: United Rate; IWted r i i ^ w Chart 10A and B - Interest Aiteteagr: U.S. C w y ate U.S.-S«6t#rt»d Chart 11 -InterestArbitrage: United Stateff Cwrfa Chart 12A and 8-Selected Short4eiw Interest Rates PART III LOMG-TERM INTEREST RATES AMD STOCK MttXCES Chart 13 Chart 14 - Long-Term 8 W Yields - Industrial Siodc Indices PART IV. SELECTED CENTRAL BANK DISCOUNT RATES AND LATEST FIGURES PLOTTED ON THE CHARTS NOTE: This series is a continuation of the CAPITAL MARKETS DEVELOPMENTS ABROAD, which was ptdriisbed under that title throw# Decoder 31,1%8. The rh anger in the format and order of the charts are nrplained in Ihe Segment to the series, Which arrnwpinifd issue dated January 1 , 1 * 9 All series and their sources are telly described in a Supplement dated Januvy 1,1972. Chart 1A SPOT EXCHANGE RATES MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages Per cent GERMAN MARK I * . POUND \ SWISS FRANC DUTCH GUILDER (DUTCH * • J S D 1972 * Pounc Koatec June 25 1972 * * Swiss franc floated January 23. 1973 See separate chart mmt Japanese Yen floated February 13. 1973 * * * *FRASER Based on new Central Rate Digitized for * J 1973 S D M Chart 18 SPOT EXCHANGE RATE - MAJOR CURRENCIES AGAINST U4 DOLLAR Weekly averages ITAUAM LMA BELGIAN FRANC tTAUAM URA Ratio scale. U 5 cents Ratio scale, U S cents 246 I I J I I I I I 1 I I I I I I I I I I I I I W j S D * 1*70 * Italian Lira tleeled fabruary 13. 1973 ii Hale. J 1971 S 0 Chart 1C SPOT EXCHANGE RATES - MAJOR CURREWCES AGAWST U-S. DOLLAR May 11, 1971 - Dec 17 1971 Weekly averages Per cent GERMANY NETHERLANDS JAPAN US MAY JUNE JULY SEPT AUG 1971 * Financial franc OCT NOV DEC Chart ID SPOT fxaumct RATES - MAJOR CURREHOES ACAWST us. OOUAR 11. 1971- Dec 17 1971 UJL SWITZ. ITALY UJL ITALY SWITZ. MAY June JULY AUG. OCT. itn • f o r clarity the vertical scale is dowbte that m*4 ie 1C MOV. DEC 3 4 * * I T H FORWARD EXCHANGE - MAJOR CUHREWCES AGAINST US DOLLAR Wee*t\ average? Fer cent per annum CANADIAN DOLLAR UjK. POUND DISCOUNT - DUTCH M S D 1970 * S 1971 Canadian Dollar Rate not supported by Bant c' Canada D « s 1972 V m j 1S73 s D 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCES AGAINST US. DOLLAR Wee*«v averages Pet cent pet annum DISCOUNT PREMIUM DISCOUNT - S D S M 1970 1971 D M S 1972 D M S 1973 D 1 3-MONTH FORWARD EXCHANGE CURRENCIES AGAINST UJL FOUND Per cent per annum Friday figures 16 PREMIUM * - - 12 : - L / GERMAN MARK i A A J US. DOLLAR V W DISCOUNT - • ' ! 1i ! i 11 w j S D 1970 W J 1971 S D W J S 1972 D W J S 1973 D Y> Chart 36 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST UJC. POUND Fnday figures Per cent per annum PREMIUM FRENCH FRANC 4 ; M J S D W 1970 ; J 1971 S D M J S 1972 D 8 M J S 1973 D w Chart 4 GOLD MICE HI UMOOH12-5 KG BAAS I S dollar equivalent per fine ounce Week's average of afternoon fixings M 70 W J s D 1*70 « J 1*71 s D « J 1*72 S D M J 1*7* s 0 X CALL MONEY RATES DOLLAR FUNDS Weekly averages Per cent per annum 14 OVERNIGHT EURO-DOLLAR CALL EURO-DOLLAR DEPOSITS FEDERAL FUNDS DIFFERENTIAL EURO-DOLLAR OVER FEDERAL FUNDS FAVOR EURO-DOLLAR FAVOR FEDERAL FUNDS EURO-CURRENCIES Weekly averages Per cent per EURO-SWISS FRANC 1970 1971 Chart 58 CALL MONEY RATES SELECTED FOREIGN AND EEC CURRENCIES Friday figures Per cent per FRANCE UK. S D 1970 1971 1972 France Day to day Money Netherlands. Call Honey, weekly average, Japan, Unconditional Money . Canada Day to day Loans weekly average. Germany, Call Money. U K . 2 day Local Authority Deposits 1973 Chart 6A LONDON: EURO-DOLLAR DEPOSIT RATES Friday figures Per cent per annum OVERNIGHT 12 10 S D M 1970 S 1971 * Way 1 2 / 7 1 - c h a n g e d to Overnight Euro-Dollar Deposits * • July 1 - c h a n g e d to 7-Day Euro-Dollar D M J 1972 S D M J 1973 S D Ctwl« LOMOOM: E M K M M M l i M I DEPOSIT SATES fridey 1<*ures 12 10 • 6 4 2 12 10 • 6 4 2 1071 1073 NEW YORK-LONDON: YIELDS ON US. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-SECONDARY MARKET Per cent per annum Wednesday figures 12 10 1 MS. CERTIFICATE OF DEPOSIT DIFFERENTIAL EURO DOLLAR OVER U.S. CERTIFICATE OF DEPOSIT FAVOR EURO DOLLAR « n e w VORK-UWOOW: COST O f U 4 DOU-Ae F0W06 3-MONTH DOLLAR DEPOSIT RATES—PR WARY MARKET Per cent per annum Wednesday figures 12 EURO-DOLLAR DEPOSIT ADJUSTED EUeO-OOUASI DEPOSIT US. CERTIFICATE OF DEPOSIT ADJUSTED US. CERTIFICATE OF DEPOSIT ADJUSTED * Adjusted for Heserwe Requirement * * Adjusted for 10* Marginal Reserve Requirement ***Adjusted tor 20% Marginal Reserve RequiremeM Chart 8A LONDON: COVERED YIELDS ON US. DOLLAR" FUNDS HIRE PURCHASE/STERLING CD's us EURO DOLLAR RATES Friday figures Per cent per annum 12 EURO-DOLLAR DEPOSIT COVERED 1 1 i 1 1 0 1 L FAVOR STERLING CD s DIFFERENTIAL /x Jl /LiA i / V ) y^XvA f b w ! FAVOR EURO DOLLAR M j S , 1 : D M 1970 ' i , J 1971 , S : , : D 1 ! H 1 i 1 i J ! S 1972 * H i r e Purchase suspended August 11, 1972 and Sterling Certificates of Deposit begin August 11, 1972 i 1 1 1 i D 1 i W i J 1 1 i 1 1 1 1 1 S 1973 Y\ Chart 88 LONDON: COVERED YIELDS ON US. DOLLAR FUNDS LOCAL AUTHORITY AND EURODOLLAR RATES Friday figures Per cent per annum FAWW LOCAL AUTHoeirr DIFFERENTIAL FAVOft E W O - O O U X I M J S D M 1*70 J 1*71 S D M J l§72 S D M J 1973 S 0 Chart 9A INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Per cent per annum , : . , —i ; I 12 3 - M O N T H TREASURY B I L L RATES I U.K. LOCAL AUTHORITY DEPOSITS UNCOVERED LOMDOM MEW YORK M J S D 1969 * Plotted for comparison purposes s M 1970 D M J 1971 s D M J 1972 S D I X Chert 9 6 INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Per cent per annum RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING I PREMIUM, SPflEAO M FAWO* Of LONDON FORWARD RATE DISCOUNT FAVOR LONDON DIFFERENTIAL FAVOR NEW YORK M J S D lMft M J 1*70 S D M J 1971 S D M J 1S72 S 0 4 Chart 10A 3-MONTH FUNDS INTEREST ARBITRAGE: EURO DOLLAR - GERMAN MARK FRANKFURT INTERBANK LOAN RATE VS LONDON EURO DOLLAR RATE Wednesday rates Per cent per annum 14 IN TERMS OF DM GERMAN INTERBANK LOAN RATE COVERED FAVOR FRANKFURT DIFFERENTIAL FAVOR EURO DOLLAR l I l I I l l I I l D M J 1971 No quotation S 0 1> Chart 106 3-MONTH FUUDS INTEREST ARBITRAGE: EURO-DOLLAR - SWISS FRANC ZURICH DEPOSIT RATE VS. LONDON EURO-DOLLAR RATE Wednesday rates Per cent per annum IN TERMS OF SWISS FRANCS EURODOLLAR COVERED DEPOSIT RATE 2 DIFFERENTIAL FAVOR EURO DOLLAR M J S D 1969 — — —No quotation M J 1970 S D M J 1971 S D M J 1972 S D 3-MONTH INTEREST ARBITRAGE: UNITED STATES - CANADA Friday figures Per cent per annum 1 1 | II 1 1 1 11 1 1 11 1 1 - BILL R A T E S ^ ^ ^ J \ S. | 1 1 | 1 1 . ^ 1 1 | 1 1 | 1 1 | 11 1 1 | 11 J 1 I [ ! 1 . \ r \ - ^ v y z \ / V v y ^ < c A i N. FIN. CO. PAPER UNITED STATES TREASURY BILLS - CANADIAN V V TREASURY BILLS V — BILL RATE DIFFERENTIAL AND FORWARD CANADIAN DOLLAR FORWARD RATE GROSS SPREAD IN FAVOR OF < COVERED RATE DIFFERENTIALS FAVOR CANADA TREASURY BILLS FAVOR U S : FINANCE PAPER FAVOR US 1 1 1 I M I 1 I J I S 1 I I 1 I D I M 1969 1 I J I I I S 1970 I 1 I I 1 I O M I 1 I I J I I S 1971 I I O I I I I I I I I I I I I I M J 1972 S 0 10 / ">••• Chart 12A SELECTED SHORT-TERM INTEREST RATES' Ft.- cent per a n n u m GERMANY U.K. U.S. JAPAN US. CANADA 1968 1970 * 3-month treasury bill rates for all countries except JapanfAverage rate on bank loans and discounts) and Germany(lnterbank Loan Rate) 1972 Chart 128 SELECTED SHORT-TERM INTEREST RATES* Per cent per annum EURO DOLLAR - LONDON US. SWITZERLAND 1968 1970 * 3-month treasury bill rate for U S . Switzerland-3-month deposit rate. # # 3-month rate for U S dollar deposits in London 1972 1 Chart 13 LONG-TERM BOND YIELDS Weekly figures Per cent per annum NETHERLANDS us U.S. SWITZERLAND 11 UiC. Monthly figures US. CORP US. CORP. DM EURO-BONDS 1968 1969 1970 1971 * N e w series for Switzerland starts 8 2-68. U S Corp Dollar Euro-Bonds and U S Corp DM £uro-8onds starts 12-70 * * New Average yield of all German PA Bonds begins 1 7-69 * * * New series f starts 12 71 * New series G starts 11-72 CHART 14 1958=100 INDUSTRIAL STOCK INDEXES 2S0 UNITED STATES I I 1 iV r 1 1 1 1 1 1 1 1 1 1 1 I I 1 i i i i i i i 1 i i 1 i i i i 1 i i 1 i i ! i i x SWITZERLAND -Av/H V r / ""V \ r - UNITED KINGDOM 1 1 1 1 1 1 1 1 1 1 1 1 i i 1 i i 1 i i 1 i i i i 1 i i 1 i i f 1 i i 1 1 I - r s 1 1 1 1 i I 1 i I ^818.04 '"V : / uo GERMANY ' CANADA • i 1 i i 1 i i 1 i i 1949 240 V V / 1 1 1 1 1 1 1 1 1 1 1 1 1 i 1 I 1 1 1 i 1 11 lt70 1971 i i 1 II I i i 1 i i 1972 i mde* of 225 industrial a r t other stocks traded on Tokyo exchange m mde* of all industrial aed «Iher stocks traded eelfce feat sectiee of the Tdfcjv Sloe* Excfcaeftt. March 1 4 , 1973 « . 23 #0. m Country IV. SELECTED CENTRAL BANK DISCOUNT RATES Current Rate In Effect Since Previous Rate In Effect Since E.E.C.: Belgium France Genaany Italy Netherlands * * D n l t e d Klngdh m Canada Japan United States 5.0 Dec. 2 1 . 1972 4.5 • o r . 2 2 . 1972 7.50 • o r . 3 0 , 1972 6.50 • o r . 2 , 1972 5.00 J a n . 1 2 , 1973 4.5 • o r . 3 0 , 1972 4.0 A p r i l 1 0 , 1972 4.5 O c t . 1 4 , 1972 4.0 Muwwbu 3 / 7 2 3.0 S e p t . 8 . 1972 8.75 J a n . 1 9 . 1973 9.# Dec. 2 2 . 1972 4.50 T—i 3.75 Rf* 4.75 O c t . 2 5 . 1971 5.25 Feb- 2 4 . 1971 4.25 Ti»rw> 9A 1079 4.75 A » H 1 99 5.00 J a n . 1 5 . 1973 4.50 pk. i K m 1S i e T > 1971 12. m i * * E f f e c t i v e October 1 3 , 1972, t h e Bank o f England r e p l a c e d I t s t r a d i t i o n a l Bank Rate w i t h a f l u c t u a t i n g "minimum l e n d i n g r a t e " baaed on average T r e a s u r y b i l l tender r a t e . January 1 9 , 1 9 7 3 . . . 8 . 7 5 9 IV-2 LATEST FIGURES PLOTTED ON THE CHARTS Chart Panel Series 1A Upper Swissfranc^ U.K. pound French franc 2 / Japanese yenZ/ Lower IB Upper Lower 2A 28 Upper Lower 3A Belgian francJ/ Italian l i r e ^ Canadian dollar German « * i 2 / Dutch guilder ACTUAL RAHE A c t u a l Ratii 4 March 2 A c t u a l Katet « A c t u a l Rate " M German marie Swiss franc U.K. pound Dutch guilder Canadian dollar French franc Japanese yen Gold price, U.S. dollar per ounce 31.5620 240.4600 +1.622 .377300 M German mark U.S. dollar Swiss franc French franc 36 Rale Date +2.21# .177600 100.5# +2.395 M - +2-597 March 9 MA +3.83 -3.29 +7-16 +2.12 " « +1.02 MA „ +12.22 +3.36 " « +5.31 +3.4# H #3.22 Feb. 21 5A Upper Middle Lower 56 Upper Lower 7 4 # 7.02 +0.27 Man* 9 Feb. 28 March 9 12.25 4.00 7.125 March 2 7.125 4.3# a Feb. 23 •A 3.75, 5.250 I Overnight Euro S deposits Federal Funds Differential Euro-currencies: Euro DM Euro Swiss Fr. Japan, Unconditional Money U .K., 2-day Local Author. Deps. Canada, Day-to-day Loans France, Day-to-Day Money Germany, Call Money Netherlands. Call Money 1 / S w i s s f r a n c f l o a t e d January 2 3 , 1973 If I t a l i a n l i r e and J a p a n e s e y e n f l o a t e d F e b r u a r y 1 4 , 1 9 7 3 3 / F r e n c h f r a n c , B e l g i a n f r a n c , German m a r t , and D u t c h g u i l d e r b a a e d on new c e n t r a l r a t e # e f f e c t i v e February 14, 1973 IV-3 Chart Pane! Date Series 6A £uro-S Overnight Rafce March 9 10.00 H 8.88 N Feb. 28 March 7 8.19 8.25r 8.31 March 7 Feb. 28 7 6.80 +1.80r 4-1-SI March 7 Feb. 28 March 7 8.31 10.31r 10.39 Mare*. 7 Feb 28 7 F e b . 28 7 6.95 +3.5* F e b . 23 8.25 Eiiro-S 1-month Rale 66 Euro-S 3-month Rale Euto-S 6-month Rate 7A Upper Euro-S 3-month Deposits Lower Differential U.S. Certificate of Deposits 76 Upper Euro-S 3-month Deposits Euro-S 3-month Deposits (Adj.) U.S. Certificate of Deposits (Adj.) Differential: on Adj. Euro-S Deposits Lower on Unadj. Euro-S Deposits 8A Upper Euro-S 3-month Deposits *, s+jfrT i n g cp'fi fcovered) 86 Lower Differential Upper Euro-S 3-month Deposits Lower 8.25 •« 7.36 Differential •« -0.89 Local Authority Deposit (uncovered) Lower 7-42 Local Authority Deposits (covered) U.K. Treasury Bill rate Upper -1.53r -1 % -0.83 U.S. Treasury Bill rate 9A 96 Rate Spread (+- favor London) 3-month Forward Pound , Net Incentive (+- favor London) [ March 9 5.76 •i 8.11 March 2 lO.Slr March 9 +2.35 •« -3.78 " -1.43 IV - 4 Kale Chart P*d Series Me 1M Upper £wo-$ Deposits (comei) March 7 LMT pitfy-wlijl « Upper £mo-S DepMHs (cimMD it •4 8*44 MB wa Swiss Oppesit a l e 21 Low vmmm** Upper cmaam fmmattm* M -0-«0 March 9 5-13 H S 76 U Ju T«e*swy 0itl a l e M U.S. Priae Fiaaace ppper taetpMM SecW n — i f r f i i n i i p 22A 1 M MWWWeeMMs aen» Met krerfmr em Fmmoe ftpp Upper vjlt*mmrm*ate us. T a e w y Lwr ale , l » i r r r Aweape a l e 6.25 H -1-71 M 41.15 „ „ 4A.<4 „ „ m 1-11 1 £4 Deeper *.724 March P U.S. ittmrny 228 ale M 5.76 Emp-S Ppp>filf M S.56C Smss WeWhOppmntale W 4,W» U S. T«weey Bill a l e « 5,7* IV-5 Chart Panel Series 13 Upper Netherlands 6 March 2 6.76 Feb. 23 7.21 United States Dec. 27 5.47 Feb. 9 5.30 Germany United Kingdom Lower U.S. Corp. Dollar Eum^ion^^ ^ U.S. Corp. DM Euro-bonds , Series G U.S. Corp. Aaa bonds 14 Upper Switzerland Gennany United States Middle United Kingdom Canada Lower Rate Canada Switzerland Middle Date ** Japan United States Feb. 22 8.47 Feb. 23 9.92 January 7.66 ' „ 7.12 February 7.22 March 9 420.4 March 7 313.8 March 2 253.90 •Hard) 9 240.07 M»i-r4i 1 7M-18 7 * 1 * OA March 2 253.90 * New - Average yield of ALL German Public Authorities bonds made as of banking key days. *'* Beginning week ended September 5, 1970, the Japanese index plotted is that of all industrial and other stocks on the First Section of the Tokyo Stock Exchange.
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