HC Deb 29 October 1980 vol 991 cc301-2W
Mr. Hooley

asked the Chancellor of the Exchequer what proposals have been made by Her Majesty's Government to the International Monetary Fund concerning the interest rate yield on special drawing rights.

Mr. Lawson

Her Majesty's Government welcome the decision of the interim committee of the IMF that the executive board should give early attention to the question of adjusting the SDR interest rate to the full market rate.

Mr. Hooley

asked the Chancellor of the Exchequer if it is the policy of Her Majesty's Government to encourage commercial use and marketability of special drawing rights.

Mr. Lawson

Her Majesty's Government support measures designed to enhance the attractiveness of the SDR and promote its use by private as well as public holders. They therefore welcomed the decision of the fund to promote the role of the SDR as an international reserve asset by permitting its use in swap arrangements and forward operations and by increasing the number of official institutions that can hold and deal in SDRs. They also supported the recent decision to simplify the composition of the SDR and to unify the SDR valuation and interest rate baskets as a step to facilitating the wider use of SDR denominated assets and liabilities in financial markets and in international transactions generally.