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Sterling Convertibility

Volume 441: debated on Tuesday 29 July 1947

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asked the Chancellor of the Exchequer with what countries arrangements have been concluded whereby sterling received by them from the International Fund becomes convertible; and whether such arrangements apply also to all sterling-area currencies.

No such arrangements are needed, since sterling received from the Fund, is not distinguished from other sterling currently accruing.

Does that mean that all the sterling we have made available to the International Monetary Fund is convertible; and does it further mean that all currencies within the sterling area are ex-changeable first, into sterling, and, secondly, into any other currency?

I have tried to put the answer very plainly to the hon. Gentleman's Question. No special problem arises with regard to moneys drawn from the Fund as distinct from the general problem of sterling currently accruing. Sterling drawn from the fund is sterling currently accruing.

Does this mean that in addition to sterling currently accruable, all sums drawn from the International Monetary Fund either in sterling or sterling area currencies are convertible?