The percentages of allotments to the various banks gave considerable dissatisfaction as some got a full allotment and others as little as 30 Per cent. It was this disproportionate allotment that first really disturbed the market.
During the week following this allotment, the market remained com-Paratively stable, although sellers Were searce. Even the banks with a full allotment were not good sellers, and while the selling rate to merchants remained at 1/2 sterling and USS27% the open market rate dropped to 1/1% and U.S.$25%. On March 24, the disparity between the allotments to the various banks was still more pronounced, ranging from 82% per cent, to 10 per cent.
This again caused nervousness and lack of confidence in the currency, as the reluctance of banks to. sell naturally caused a keener desire to buy, so that there were still wider differences between the official rates and the open market rates, the latter declining to 1/1% sterling and Any readjustment of the silver price, it was believed, might lead to further manipulation of foreign currencies United Press On Mar. 23, in an effort to bring: the two rates together, an ancouncement was made that the serai-official rate to merchants would be 1/- at 25% and Yen at 88% in the open market, but later there was considerable easiness when it was learnt that allotments of exchange by the Central Bank were little different from the previous week.
'Although there were fluctuations during the day. these rales were obtainable in the open market at the close. Banks' mercHant rates.were 10% and 25% for sterling and US. Dollars during the day.
Food And Rent Increases
Text read from the printed page and cleaned; old type leaves the occasional error.