HC Deb 08 February 1966 vol 724 cc36-7W
Mr. Maddan

asked the Chancellor of the Exchequer how much foreign currency has accrued to the official reserves as a result of the rule he has imposed requiring that 25 per cent. of the proceeds of the sale of foreign currency securities be exchanged for sterling at the official rate and be withdrawn from the investment pool; and if he is aware that the creation, consequent upon this rule, of a market in which investment dollars are being valued at approximately 2.30 dollars to 1 pound sterling undermines the maintenance of the pound sterling at the official parity of 2.80 dollars.

Mr. Callaghan

The estimate I gave in the Budget is likely to be exceeded. I do not accept the last part of the Question. It is well understood that the investment currency market (which is an unofficial market) is a restricted one.