HC Deb 13 June 1974 vol 874 cc1800-1
1. Mr. Carter

asked the Chancellor of the Exchequer what is the value of the £ sterling, to the latest date, compared to the French franc, Italian lira, deutsche-mark and United States dollar; and how this compares to the value on 28th February 1974.

The Paymaster-General (Mr. Edmund Dell)

With permission, I will circulate the figures in the OFFICIAL REPORT.

Mr. Carter

Would my right hon. Friend accept that those figures will show that the pound has improved generally against the currency mentioned? Can he say why it is that, since Election Day, 28th February, although the pound has improved in this way, thus reflecting foreign confidence, the Conservative Party and its leader have proclaimed throughout the country how badly the economy is doing under the present Government?

Mr. Dell

I am glad that there is foreign confidence in sterling. The figures available since 28th February confirm what my hon. Friend has said. There has been a slight depreciation compared with the deutschemark but in other cases there has been an appreciation.

Mr. John More

Does the right hon. Gentleman accept that, quite contrary to the statement made by his hon. Friend, the Arab oil inflow in excess of £600 million is a key factor? Would he like to say whether he will pursue policies to lower interest rates and turn away such money, or does he intend to increase sterling guarantees?

Mr. Dell

Arab oil has been a factor in this. As has been frequently pointed out, our policy of lowering interest rates is subject to the constraints imposed by the international situation. As for the sterling guarantees, the hon. Gentleman must wait and see.

Following is the information:

London middle market closing rate on
28th February 1974 4th June 1974 11th June1974
Currency (£1=) (£1=) (£1=)
French franc 11.146 11.698 11.78
Italian lira 1,492.5 1,543.7 1,562.7
Deutschemark 6.159 6.034 6.011
U.S. dollar 2.3050 2.4003 2.3950