Exchange Squeeze
p. 26 · Read in the full issue
New Caledonia's Exchange Squeeze
shortage of foreign exchange is already being felt in New Caledonia, The French Government has asked the New Caledonian admini stration to “stretch” its foreign exchange allocation until Sep tember, instead of ending the period on June 30, as was intended.
The French Empire, like the British Commonwealth has a “pool” of foreign exchange and since 1952 New Caledonia has not benefited completely from the dollars earned by the export of its mineral wealth.
New Caledonia has to abide by these rules although she earns more foreign exchange than any other country in the Empire.
It is likely that Australia will suffer most from this exchange squeeze, food that normally is imported from there will now largely come from France and other French possessions—at a much higher cost, of course.