European Stars and Stripes (Newspaper) - August 18, 1991, Darmstadt, Hesse                                Sunday August 18, 1991 the stars and stripes Page 15 Dollar watch shown below arb the highest Dollar Exchange rates for the week of aug. 11 aug. 17 compared with Dollar rates for the same period one year and five years  Pound one Pound would Cost you $1.67$1.88 1991 $1.48 1990 1986german mark4 one Dollar would buy you 1.71 19911.57 2 06. 99oj bj986j a military Exchange rat italian lire one Dollar would buy you 1425 1160 1309 a iou 1990 1986 Spanish peseta one Dollar would buy you -135 109 199197 i 1990 i 1986 i a amps the Dollar showed its resilience on the world Market last week mov. Ing 3 pfennig higher despite a 1 percentage Point hike in Germany a discount rate to 7.5 percent. Also helping the Dollar was the release of a glowing report on the shrinking . Trade deficit. The Commerce department said Friday that the nations merchandise Trade deficit narrowed in june to $4.02 billion the lowest level in eight years and better than the $4.3 billion deficit that Many observers had expected. Friday afternoon in Europe the Dollar was trading near 1.755 Marks and just under $1.67 for one British Pound. Currency traders said the Market seems to be shifting to the belief that the . Economy is about to rebound while the German Economy is slowing to a crawl due to the immense Cost of rebuilding the once communist Eastern half of that nation. A we have come full Circle to the situation we were in a couple of months ago a said David Cocker chief economist with chemical Bank in London. Cocker said the Dollar should gain further ground particularly against the Mark. Most investors think that . Cor orations will Start to show More i rant earnings in the months to come while German firms Are Likely to be shackled by the recent interest rate hike in Germany Cocker said. Higher interest rates tend to make it More difficult for firms to borrow Money and expand. The Bundesbank raised its discount rate a full percentage Point on thursday and another key rate the Lombard rate by 0.25 percent. Exchange rates available at military banking facilities in Europe Are up this weekend. In Germany one Dollar will buy 1.71 Marks compared with 1.68 Marks one week ago. In the United kingdom one Pound is Selling for $1.71, compared with $1.74 last weekend. The stars and stripes of to use arms credit cards to get Cash travel advances by Randy Mcclain financial writer Ramstein a Germany a almost 4,000 air Force personnel in Europe will soon be Able to use government issued credit cards to get Cash advances from automated Teller machines while travelling on government business officials said thursday. The advantage to the air Force is that fewer Cash advances will have to be processed for official travel. Personnel will be Able to withdraw Money As needed from merchants National Bank automated Teller machines in much of Europe and get reimbursed later. The system will be used most often in connection with travel to bases in Germany the United kingdom and the Netherlands where Bank arms Are plentiful said master sgt. Rick Taylor with the . Air forces in Europe Headquarters accounting staff. The system will be less frequently used in Italy or Turkey where Bank machines that Stock dollars Are generally not available. Taylor said air Force personnel travelling in Europe should still find the new system to their liking. Personnel who have already been issued a diners club card have been Able to charge major items such As rental cars and lodging to the card for several Quot months while on government trips. The new system for Cash advances will Start up in Europe in late september. Diners club is currently sending out applications to the 3,787 air Force card holders in Europe so that personal identification numbers can be issued. Once a card Holder receives his or her identification number it can be used to get Cash from Money machines. Cash withdrawals for such items As meals tips and taxis can be made daily As Long As there is a Money machine in the neighbourhood. The  will be billed for the withdrawals by diners club at the end of the month. But since diners club is on a 30-Day Billing Cycle the air Force will have reimbursed personnel for expenses related to government travel Long before the Bill comes due. Diners club charges a 4 percent administration fee for All Cash withdrawals Taylor said. But that expense is also a reimbursable one As Long As All the Money a service member withdraws while on the Road is related to official travel. All officers master sergeants and above and civilians gs-9 and above Are eligible to use the diners club system. Also eligible for the atm Cash Advance program Are certain non appropriated fund employees who travel More than twice a year on official business Taylor said. Cash advances will still be made prior to temporary duty travel for persons who Arentt eligible for the diners club program and to service members travelling to areas where its known that the diners club card wont work in Bank machines he said. Deficit drops to $4 billion in june for lowest monthly level in 8 years Washington a robust exports helped trim the . Merchandise Trade deficit in june to $4,02 billion the lowest monthly level in eight years the government reported Friday. A it is now virtually certain that the . Trade deficit for 1991 will be Well under $100 billion for the first time since 1983,�?� said Stephen Cooney an economist with the National association of manufacturers. The Commerce department said the Gap totalled $60.5 billion at an annual rate during the first half of 1991. If it continues at that Pace it would be the smallest imbalance since 1983, when the deficit stood at $52.4 billion. Earlier the Bush administration and some economists had forecast a deficit of less than $90 billion this year. It peaked at $152.1 billion in 1987 and has fallen steadily since then dropping to $101.7 billion last year. Although exports dipped 1.2 percent to $34.8 billion in june the level was the third highest following the record $35.6 billion in april and $35.3 billion in May. Imports also fell Down 3 percent to $38.9 billion. Commerce Secretary Robert a. Mos Bacher expressed pleasure with the report saying that a exports continue to expand at a solid Pace this year rising a significant 6.5 percent Over the same period a year  . Manufactured exports increased a Strong 8 percent during the first six months of the year a he said. The Bush administration is looking to recovery from the recession. In 19 Strong exports to help fuel the Economy a cry from the recession. In 1990, sales of . Goods overseas represented about 40 percent of americans economic growth and contributed to the creation of one out of every four new jobs. Other economists however believe ex-. Merchandise Trade deficit billions of dollars seasonally adjusted import figures exclude shipping and insurance. 12 j a s o n o j f m a m j 1990 1991 Juns 90 May 91 june 91 6.33 1 i 4.80 i i 4.02 i source . Dept of Commerce a ports will continue to taper off this year As overseas economies falter and the stronger Dollar makes purchases of . Goods More expensive. The economists also expressed concern that an improving . Economy will increase the purchasing Power of americans who will buy foreign products As Well As those made domestically. Still Cooney said a the numbers for the first half of this year suggest that exports Are robust enough to keep shrinking the Trade deficit despite the end of the recession and the expected increase in demand for  driving exports Down in june were decreases in Industrial supplies and materials Grain and consumer goods Commerce said. That was partially offset by an increase in capital goods including $800 million in aircraft. Leading the drop in imports were declines in Industrial supplies and materials and consumer and capital goods. Automobile imports on the other hand increased $170 million. Purchases of foreign Oil fell 12 percent in june to $4 billion. The volume of Oil imports declined 8.9 percent while the Price slipped 16 cents to $16.39 a barrel. The largest deficit continued to be with Japan. That imbalance jumped 33 percent to $3.2 billion. The $2.4 billion Gap in May had been the lowest since a $1.8 billion imbalance in february 1984. Other nations with whom the United states had deficits included China $1 billion Taiwan $693 million and Canada $460 million. Over the counter Bond sales to end by Randy Mcclain financial writer Frankfurt Germany a merchants National Bank officials said a new system of Selling . Savings Bonds could take effect overseas As Early As sept. 1. Under the new system Over the counter Sale of savings Bonds will cease. The change was ordered by the . Treasury department Bank officials said. Tellers at merchants branches will still be Able to take customers orders for savings Bonds and will collect the funds. But orders will have to be sent to the Chicago Federal Reserve which will Issue the Bonds by mail. Yvonne Wise spokeswoman for Mer chants said it could take three weeks for the actual Bonds to be sent to customers. The new system does not affect savings Bond purchases handled via payroll deduction she said. Savings Bonds can also still be purchased As gifts. The Bonds will not be issued immediately but purchasers will be presented with non negotiable gift certificates As proof of Purchase. Merchants officials said some customers May perceive the end of Over the counter sales As an inconvenience but there is at least one advantage to the switch. Customers will be Able to Purchase Bonds in any denomination they like including $5,000 and $10,000 Bonds which  be sold Over the counter before. In the unlikely event that Bonds Are lost in the mail they will be replaced and customers wont incur any loss of interest because of the delay in delivery Wise said. Wise said merchants branches Are shooting for a sept. 1 implementation Date for the new system but that might have to be pushed Back. The Bank cannot begin processing customers orders until new application Blanks Are received from the fee Raj Reserve Bank in Chicago. As of thursday that material Hadnot yet been received Wise said