£ Sterling (Hansard, 24 July 1973)

§ Mr. Kaufman
asked the Chancellor of the Exchequer what is the purchasing power of the £ sterling now taking it as 100p in (a) 1939 and (b) 1945.

§ Mr. Nott
Information is not available for 1939 or 1945.
Taking the internal purchasing power of the £ sterling as 100p in 1938 and 1946, its value in June 1973, the latest date available, is estimated at 18½ p and 31½ respectively. These estimates are based on the movement in the Consumer Price Index between 1938 and 1968, and on the movement in the General Index of Retail Prices for other periods.

§ Mr. Meacher
asked the Chancellor of the Exchequer what has been the monthly support costs to the British authorities on the foreign exchange markets to assist the sterling rate during each month since the £ sterling was first floated in 1972.

§ Mr. Nott
It is not customary to reveal details of transactions of the Exchange Equalisation Account.

§ Mr. Meacher
asked the Chancellor of the Exchequer what has been the value of the £ sterling in relation, respectively, to the dollar, the franc, the deutschemark and the yen immediately prior to the 513W floating of the £ sterling and at successive monthly intervals from that time; and at each of these monthly intervals, what has been the percentage change in the value of the £ sterling in relation to each of

TABLE 1

LONDON MIDDLE MARKET CLOSING RATES FOR STERLING AGAINST THE U.S. DOLLAR, THE FRENCH FRANC (COMMERCIAL), THE DEUTSCHEMARK AND THE YEN

U.S. dollar French franc (commercial) D-mark Yen

22nd June 1972 … … … 2.5765 13.0375 8.21 777.25

21st July 1972 … … … 2.4508 12.27 7.771 737.88

22nd August 1972 … … … 2.446 12.2365 7.8055 736.5

22nd September 1972 … … … 2.4335 12.199 7.7815 733.9

20th October 1972 … … … 2.3933 11.997 7.6715 719.1

22nd November 1972 … … … 2.3512 11.8638 7.5315 707.65

22nd December 1972 … … … 2.347 11.9525 7.5085 706.6

22nd January 1973 … … … 2.3537 11.926 7.5153 711.75

22nd February 1973 … … … 2.4615 11.3185 7.1875 649.0

22nd March 1973 … … … 2.4748 11.2263 6.998 650.75

19th April 1973 … … … 2.4838 11.315 7.027 659.2

22nd May 1973 … … … 2.5625 11.3875 7.0335 675.2

22nd June 1973 … … … 2.5745 10.87 6.5663 682.05

20th July 1973 … … … 2.5402 10.2738 5.8625 673.75

TABLE II

PERCENTAGE CHANGE MONTH BY MONTH COMPARED WITH PRE-FLOAT STERLING CROSS-PARITY RATES

U.S. dollar French franc (commercial) D− mark Yen

21st July 1972 … … … − 6.3 − 8.6 − 8.0 − 8.7

22nd August 1972 … … … − 6.5 − 8.9 − 7.6 − 8.9

22nd September 1972 … … … − 7.1 − 9.3 − 7.9 − 9.3

20th October 1972 … … … − 8.9 − 11.1 − 9.4 − 11.5

22nd November 1972 … … … − 10.8 − 12.3 − 11.5 − 13.3

22nd December 1972 … … … − 11.0 − 11.5 − 11.8 − 13.5

22nd January 1973 … … … − 10.7 − 11.8 − 11.7 − 12.7

22nd February 1973 … … … − 17.6* − 17.8 − 16.8 − 23.6

22nd March 1973 … … … − 16.98 − 18.7 − 16.5† − 23.2

29th April 1973 … … … − 16.6 − 17.8 − 16.0 − 21.7

22nd May 1973 … … … − 12.9 − 17.0 − 15.9 − 18.9

22nd June 1973 … … … − 12.4 − 22.6 − 24.1 − 17.6

10th July 1973 … … … − 13.9 − 29.7 − 31.8‡ − 19.0

* Following the U.S. dollar devaluation on 12th February, the cross-parity rate between the U.S dollar and sterling changed; from February 1973 onwards this rate has been used as the base.

† Following the 3 per cent. D-mark revaluation effective from 19th March 1973 the cross-parity rate between the D-mark and sterling changed; from March to June 1973 inclusive this rate has been used as the base

‡ Following the 5½ per cent. D-mark revaluation on 29th June 1973 the cross-parity rate between the D-mark and sterling changed: the new rate has been used as the base for July 1973

TABLE 1
LONDON MIDDLE MARKET CLOSING RATES FOR STERLING AGAINST THE U.S. DOLLAR, THE FRENCH FRANC (COMMERCIAL), THE DEUTSCHEMARK AND THE YEN
				U.S. dollar	French franc (commercial)	D-mark	Yen
22nd June 1972	…	…	…	2.5765	13.0375	8.21	777.25
21st July 1972	…	…	…	2.4508	12.27	7.771	737.88
22nd August 1972	…	…	…	2.446	12.2365	7.8055	736.5
22nd September 1972	…	…	…	2.4335	12.199	7.7815	733.9
20th October 1972	…	…	…	2.3933	11.997	7.6715	719.1
22nd November 1972	…	…	…	2.3512	11.8638	7.5315	707.65
22nd December 1972	…	…	…	2.347	11.9525	7.5085	706.6
22nd January 1973	…	…	…	2.3537	11.926	7.5153	711.75
22nd February 1973	…	…	…	2.4615	11.3185	7.1875	649.0
22nd March 1973	…	…	…	2.4748	11.2263	6.998	650.75
19th April 1973	…	…	…	2.4838	11.315	7.027	659.2
22nd May 1973	…	…	…	2.5625	11.3875	7.0335	675.2
22nd June 1973	…	…	…	2.5745	10.87	6.5663	682.05
20th July 1973	…	…	…	2.5402	10.2738	5.8625	673.75

TABLE II
PERCENTAGE CHANGE MONTH BY MONTH COMPARED WITH PRE-FLOAT STERLING CROSS-PARITY RATES
				U.S. dollar	French franc (commercial)	D− mark	Yen
21st July 1972	…	…	…	− 6.3	− 8.6	− 8.0	− 8.7
22nd August 1972	…	…	…	− 6.5	− 8.9	− 7.6	− 8.9
22nd September 1972	…	…	…	− 7.1	− 9.3	− 7.9	− 9.3
20th October 1972	…	…	…	− 8.9	− 11.1	− 9.4	− 11.5
22nd November 1972	…	…	…	− 10.8	− 12.3	− 11.5	− 13.3
22nd December 1972	…	…	…	− 11.0	− 11.5	− 11.8	− 13.5
22nd January 1973	…	…	…	− 10.7	− 11.8	− 11.7	− 12.7
22nd February 1973	…	…	…	− 17.6*	− 17.8	− 16.8	− 23.6
22nd March 1973	…	…	…	− 16.98	− 18.7	− 16.5†	− 23.2
29th April 1973	…	…	…	− 16.6	− 17.8	− 16.0	− 21.7
22nd May 1973	…	…	…	− 12.9	− 17.0	− 15.9	− 18.9
22nd June 1973	…	…	…	− 12.4	− 22.6	− 24.1	− 17.6
10th July 1973	…	…	…	− 13.9	− 29.7	− 31.8‡	− 19.0
* Following the U.S. dollar devaluation on 12th February, the cross-parity rate between the U.S dollar and sterling changed; from February 1973 onwards this rate has been used as the base.
† Following the 3 per cent. D-mark revaluation effective from 19th March 1973 the cross-parity rate between the D-mark and sterling changed; from March to June 1973 inclusive this rate has been used as the base
‡ Following the 5½ per cent. D-mark revaluation on 29th June 1973 the cross-parity rate between the D-mark and sterling changed: the new rate has been used as the base for July 1973