HC Deb 17 June 1976 vol 913 cc228-9W
30. Mr. Cronin

asked the Chancellor of the Exchequer if he will make a statement on his policy on the parity of sterling.

Mr. Healey

I would refer my hon. Friend to the answer I gave on 7th June to the right hon. and learned Member for Surrey, East (Sir G. Howe).

31. Mr. David Price

asked the Chancellor of the Exchequer in view of his declaration that sterling is currently undervalued, what is the correct exchange value of the £ sterling against the United States dollar.

Mr. Healey

As I told the House on 7th June, I have no intention of saying what exchange rate is "correct" as this is precisely what every operator in the foreign exchange markets would like to know.

Mr. Nott

asked the Chancellor of the Exchequer what the effective trade weighted depreciation of sterling was against (a) the currencies of the EEC countries and (b) the currencies that are members of the "snake", in December 1971, January 1973 and 1st June 1976.

Mr. Robert Sheldon

The trade weighted depreciation of sterling against the currencies of the EEC countries was 10 per cent. from December 1971—the date of the Smithsonian Agreement—to January 1973, and 33 per cent. to 1st June 1976. Against the currencies now belonging to the "snake" the trade weighted depreciation was 11 per cent. by January 1973, and 42 per cent. by 1st June 1976. The hon. Member will appreciate that neither measure is the same as the effective depreciation of sterling.