THE UMES
Cutting dated
21 MAY 1969
19
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Hongkong ends forward quotations
By ANTHONY THOMAS Continuing underlying nervous- ness about the durability of exist- ing currency parities has persuaded the Hong Kong Exchange Banks' Association to announce the sus- pension of all forward quotations for the purchase of sterling and other currencies.
An association spokesman in Hongkong said yesterday this move was made necessary because of a large imbalance between the totals of purchase and sale contracts which leave the banks with un- covered positions of growing size
He said he hoped the suspension would be temporary. In the mean- time the association is advising the Colony's exporters to include in their overseas contracts " a suitable clause covering the possibility of exchange fluctuations or to invoice in Hongkong dollars ".
The uncertainty existing in the Far East about the present uneasy calm in the currency markets has also recently been highlighted by the decision of Japanese traders to agree to settle trade accounts with China in yen and yuan, rather than in the traditional French francs and British sterling.
Informed sources in Tokyo yesterday said that Kurt Georg Kicsinger, the west German Chan- cellor, has told Eisaku Sato, the Japanese Prime Minister, that Germany had decided not to re- value the Deutsche Mark on May 9 because it believed the matter required an international agree- ment of views.
Spot sterling closed at $2.3881 on quiet international foreign exchange markets yesterday, unchanged from Monday's close, but there was a further recovery by the pound in the forward market with discounts against the dollar narrowing in the one, three and six month positions.
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