HC Deb 07 November 1977 vol 938 c37W
Mr. Lawson

asked the Chancellor of the Exchequer what is his best estimate of the total inflow of foreign currency to the United Kingdom reserves as a result of the measures taken in November 1976 to prohibit the sterling finance of third country trade.

Mr. Robert Sheldon :

No further estimates have been made since that given to the hon. Member for Hitchin (Mr. Stewart) on 29th March 1977 [Cols. 114-115]. That estimate was given as one substantially greater than the original estimate of £0.5 billion ".

It is still not possible to be at all precise, but it seems likely that the stock of sterling lending repaid by overseas residents as a result of this exchange control measure was around £1 billion. It is impossible to say how much of this was subsequently refinanced in foreign currency.

Mr. Ridley

asked the Chancellor of the Exchequer in what assets the Treasury's foreign currency reserves are invested ; and what return is being earned on those assets.

Mr. Robert Sheldon :

I will let the hon. Member have a reply as soon as possible.