Palestine’s Loss on Account of Depreciation of Sterling

Owing to the depreciation in the value of the pound, Palestine has lost about £186,000, according to a statement issued by the Palestine Currency Board, giving the figures as at September 30th., soon after England went off the gold standard, and was followed by Palestine, whose currency is based on sterling. This figure is arrived at by deducting the market price of the investments of the Palestine Currency Board from their original cost price. If calculated at nominal value, which is £2,309,654, the statement says, Palestine would have lost about £63,000 more. The cost price of Palestine currency is given as £2,236,182, with a value at market price on September 30th., 1931, of £2,050,227.

The value given for the total amount of the currency reserve fund, the statement points out, is based on the market prices of the investments as at March 31st., 1931, the practice being to revalue investments for the purpose of accounts only at the end of each financial year. There has been a subsequent recovery in the market prices of the investments and consequently some increase in value.

An official statement published by the Palestine Government on September 30th. signed by Mr. Moody, the Acting Chief Secretary, read:

It has come to the knowledge of Government that there is some misapprehension in the minds of the people as to the relative value of Palestine Currency Notes and Silver Coins and that they have been encouraged in the belief that greater security is afforded by holding coins instead of currency notes. Both the paper and coin currency is fully secured above face value in London; and Government desires it to be known that there is no difference in value between a pound paper and one pound silver or nickel. This fact is emphasised by reason of the facilities that are given by banks to their customers for exchanging notes for coins.