§ Mr. Dodsworthasked the Chancellor of the Exchequer what has been the effect of the fall in value of the £ sterling on the retail price index between the end of February 1974 and the latest available date.
§ Mr. Robert SheldonBetween the end of February 1974 and 10th June 1976 the effective sterling rate fell by 25.8 per cent. This change in the exchange rate could be expected in due course to result in a rise of about 7 per cent. in the retail prices index. The effect of the most recent fall in sterling will not yet have been felt in domestic retail prices.
§ Mr. Dodsworthasked the Chancellor of the Exchequer what was the fall in the value of the £ sterling in actual and percentage terms between the end of February 1974 and the latest available date.
§ Mr. Robert SheldonThe sterling dollar rate and sterling's effective26W exchange rate, calculated on the basis of a trade-weighted basket of the currencies of our 10 major trading partners, at the close on 10th June were 1.7707 and 60.8 respectively, compared with 2.3050 and 82.0 on 28th February 1974. These figures represent falls of 23.2 per cent. and 25.9 per cent. respectively in the sterling/ dollar and effective exchange rates over the period in question.
§ Mr. Weetchasked the Chancellor of the Exchequer (1) whether he has any evidence that recent fluctuations in sterling have any connection with political and diplomatic factors;
(2) whether he has any evidence that the decline in the value of sterling has been exacerbated by withdrawals on the part of the Nigerian Government.
§ Mr. Robert SheldonI will let my hon. Friend have a reply as soon as possible.