HC Deb 06 July 1971 vol 820 cc1104-5
4. Mr. Marten

asked the Chancellor of the Exchequer what official discussions have now been held with the United States of America about the phasing out of sterling.

The Chancellor of the Exchequer (Mr. Anthony Barber)

None, Sir.

Mr. Marten

If sterling is phased out what effect will this have on the American dollar as a reserve currency?

Mr. Barber

It is quite wrong to suppose that any plans for phasing out the reserve currency rôle of sterling have been discussed with the E.E.C. or, indeed, any foreign Government. As my hon. Friend knows, all that has happened is that we have agreed that after our entry we shall be prepared to envisage a gradual and orderly rundown in the official sterling balances.

Mr. Maclennan

Does the right hon. Gentleman agree that talk about phasing out sterling is misleading, and typically misleading of the hon. Member for Banbury (Mr. Marten)?

Mr. Barber

I can only repeat what I have just said, that it is quite wrong to suppose that any plans for phasing out the reserve currency rôle of sterling have been discussed with any of these countries.