Condominium's Currency Problems

The problems created by the joint administration of the New Hebrides ave been underlined recently by the difference in values of British and 7 rench currencies.

The New Hebrides has no currency of its own, but Australian dollars nd New Hebridean francs are legal tender. Up till a few months ago these urrencies were on a par, but then fluctuations began. At one stage SAI was ’orth 125 New Hebridean francs, and a recent exchange rate was SAI quals 113 francs.

This situation has caused confusion and cheating. A tourist who hands SA2 note across his hotel bar for two beers is likely to be given in change ot 60 cents but 60 francs. The hotel pockets the difference.

Among local people the unwritten rule now is to pay for everything in rancs and to get their change in francs. The bigger shops are co-operating y quoting only in francs. Employers are paying in francs. The permanent nswer is for the New Hebrides to have one common currency, backed by he condominium.