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New Zealand to Remain at Parity with Sterling New Zealand has already restored its currency to parity with sterling,, and there is no reason to use the present re-alignment of sterling with the dollar as an occasion to make any further alteration. New Zealand will, therefore, remain at parity with sterling. This means that our currency will be devalued in terms of U.S.A. dollars to the same extent as sterling. It also means that the price which the Reserve Bank will pay for gold will be correspondingly increased. The exact price will be announced by the Reserve Bank within a few days. Prominent in the mind of every New Zealander to-day will be the inquiry as to how the sterling devaluation on the one hand, and our remaining at parity with sterling on the other hand, is likely to affect the New Zealand economy. There is not time this morning to give a survey of the implications associated with the United Kingdom decision, but I propose to make a statement in the House of Representatives at half past two to-morrow, Tuesday afternoon. It may be that the over-all effect on the internal economy of New Zealand will not be as great as would be expected and the effect on our price level and cost of living will not be great. Imports from the U.S.A. and from other countries which do not follow the sterling devaluation will be dearer in terms of New Zealand currency, but, on the other hand, our exports to those countries will produce more in terms of New Zealand currency. But as the great bulk of our trade is with the sterling area, these effects may be absorbed without unduly affecting our economy. On the other hand, and this is the vital x point, Britain has taken the important step of devaluation because, taking every circumstance into* account, it will strengthen her economy to do so, and help her to expand her exports to dollar and other hard currency countries. To the extent that the United Kingdom benefits from the change,, New Zealand, with the other countries of the British Commonwealth and the sterling area, will stand to benefit too. New Zealand will continue its full co-operation with the United Kingdom in achieving her aims of a balanced trade with the dollar countries. To enable the complicated mechanism of their exchange structure to be adapted to the new rate, to-day has been declared a Bank Holiday in the United Kingdom. That does not mean that the managers and staffs of the United Kingdom Trading Banks will have a holiday, but