HL Deb 20 September 1972 vol 335 cc1273-4WA
LORD BARNBY

asked Her Majesty's Government:

Why, with regard to the dollar premium, is the 25 per cent, retention understood to be calculated at $2.60, instead of at the adjusted rate of the moment in common with general financial procedure.

EARL JELLICOE

My Lords, this is not so. For convenience the market con- tinues to quote the investment currency premium on an exchange rate of $2.60=£1. However, when a United Kingdom investor is required to sell in the official foreign exchange market 25 per cent, of the foreign currency proceeds of a disinvestment, he receives sterling at the current market rate.