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Money Supply

Volume 978: debated on Tuesday 12 February 1980

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asked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing (a) advances in foreign currencies to United Kingdom residents by banks in the United Kingdom as a proportion of advances in sterling to such residents, (b)advances in sterling by banks in the United Kingdom to non-residents as a proportion of their advances in sterling to residents and (c) United Kingdom residents' borrowing in (i) sterling and (ii) foreign currencies from outside the United Kingdom for use inside the United Kingdom as a proportion of advances in sterling by banks resident in the United Kingdom to United Kingdom residents; and if he will explain which of these aggregates are included within the money supply as defined in sterling M3.

The proportions (a) and (b) can be derived from the following sources: outstanding advances by the banking sector are analysed by sector and between sterling and other currencies in table 6.1 of Financial Statistics; corresponding information on transactions is shown in table 6.2.Apart from notes and coin, sterling M3 consists of certain liabilities of the banking sector; advances are assets of the banking sector and therefore not included in the definition of sterling M3. The relationship of bank advances and other factors to sterling M3 is shown in

Financial Statistics table 7.3.

Financial transactions between residents and non-residents are presented in table 1.8 of Financial Statistics. Details of balance of payments transactions between United Kingdom and overseas residents are to be found in the following tables of United Kingdom Balance of Payments, 1979 edition. Net borrowing from banks, etc. overseas by private sector United Kingdom residents other than banks is in table 8ยท5; overseas currency borrowing or lending (net) by United Kingdom banks, etc., for purposes other than the financing of United Kingdom investment overseas is in table 8.9 and so are external deposits in sterling with United Kingdom banks, etc., overseas borrowing by the public sector is in tables 8.2, 8.4 and 11.2. The outstanding liabilities on such borrowing are shown in table 12.2.