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Currency Reserves

Volume 976: debated on Tuesday 18 December 1979

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asked the Chancellor of the Exchequer what adjustment should be made to the figures which he circulated in the Official Report on 13 November, concerning the change in the gold and foreign currency reserves, to allow for (a) receipts from and payments to the International Monetary Fund and (b) the funding of the old sterling balances.

The able below sets out the effects on the official reserves of receipts from and payments to the International Monetary Fund between January 1976 and November 1979. As regards part (b) of the question I assume that the hon. Member is referring to the offer of foreign currency bonds made to the official holders of sterling in April 1977. This has so far had no effect on the reserves. The official holders subscribed for the bonds in sterling; none of the bonds has yet matured.

Receipts from (+) and payments to the IMF (-)
Date$ million
January 1976+1166
May 1976+806
January 1977+1139
May 1977+360
August 1977+374
November 1977-54
April 1979-943
May 1978-75
July 1978-31
October 1978-980
November 1978-47
January 1979+367
February 1979-36
April 1979-1085
May 1979-68
July 1979-82
October 1979-83

asked the Chancellor of the Exchequer whether the figures which he circulated in the Official Report on 13 November concerning the change in the gold and foreign currency reserves were affected by a revaluation of the existing stock of gold; and, if so, whether he will circulate a table in the Official Reportshowing the adjustment which should be made to the original figures on that account.

The changes to the reserves given in the Official Reporton 13 November excluded the revaluation of gold and non-dollar currencies in the reserves, which took place on 31 March 1979 and will take place annually at the end of March in future. The effect of the revaluation was to increase the book value of the gold held in the reserves by $3,116 million, SDRs by $63 million and non-dollar currencies by $1.315 million.