A hundred years ago | April 12, 1918. Archives

From the Archives | April 12, 1918: Exchange Rates Raised.

A Press Communique says: An administration bill just introduced in the Senate of the United States provides for melting two hundred and fifty million silver dollars into bullion and for the re-purchase by the American treasury of silver. As silver for India is now bought in America and the proposed legislation will tend to keep American price above the level compatibly with the exchange rate of 1sh. 5d. the rupee, the Secretary of State has decided that commencing from the 17th April and until further notice to sell immediate telegraphic transfers at 1sh 6 d and deferred transfers and bills at 1sh 6 29-32. The rates for business as by exchange banks are accordingly altered. The Exchange Banks selling rates in India will be raised from 1sh 5 3-32 to 1sh 5 31-32 and 1sh 1-16 respectively. A corresponding modification will be made in the rates payable for imported gold acquired by the Government under the Gold Import Act 22 of 1917 namely that sovereigns shipped to India hereafter will be paid for at Rs. 13-12 per sovereign and other description of gold at equivalent rates. In order to avoid disturbance of existing contracts or hardship to those who have shipped gold to India on the strength of the terms of the notification at present governing the rates payable, gold already shipped to India on a through bill of lading will be paid for at the rates prescribed by that notification. Revised notification prescribing these new rates will be issued very shortly.

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Printable version | Aug 9, 2020 9:47:18 PM | https://www.thehindu.com/archives/from-the-archives-april-12-1918-exchange-rates-raised/article23505925.ece

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