Exchange Uncertainty

Possible Effect of Change on Fiji Gold Mines

THE flutter caused in South Pacific financial and trading circles last month by New Zealand’s decision to bring the New Zfealand £ to par with Sterling has generally died away; but the position still is regarded tensely in Fiji, where it is believed that some change will occur, sooner or later.

Fiji, with its currency 12 i per cent, under Sterling, is in a somewhat vulner able position, between Britain and New Zealand on the one hand and. on the other, Australia, whose currency remains at 25 per cent, under Sterling.

Fiji commercial interests are strongly in favour of a move to par with Sterling; but the Government, taking its instrucfrom the Colonial Office, is not favourable to any change. It probably is influenced by the fact that the estab lishment of Fiji currency at par with Sterling would gravely affect the Fijian gold-mining industry. The local costs of producing gold in Fiji have increased sharply during the past two years, and some believe that if the gold export from Fiji is to lose its present exchange ad vantage of 12£ per cent., it will be im possible for the gold-mining industry to continue.

The Fiji gold industry now ranks as on > of the Colony’s first three industries, and the gold mining town of Vatukoul'a, with a population of 4,000 is Fiji’s second largest town.