HC Deb 14 January 1991 vol 183 cc385-6W
Mr. Teddy Taylor

To ask the Chancellor of the Exchequer what are the effective upper and lower limits which sterling is permitted to move to by comparison with the deutschemark within the ERM; and if he will publish a table showing the movement of sterling since joining the ERM.

Mr. Maples

Sterling's upper and lower limits in the ERM against the deutschemark are DM 3.132 and DM 2.778 respectively. Sterling's effective upper and lower limits against the deutschemark are determined by the need for sterling to remain within its bilateral limits against all other ERM currencies simultaneously. The effective upper limit against the deutschemark is the rate at which sterling would reach its upper limit against the weakest ERM currency. The effective lower limit is determined by sterling's position against the strongest currency in the system. The effective limits vary over time in line with the movements of exchange rates within the system.

Sterling's movements against the deutschemark since its entry to the ERM are as follows:

Average exchange rate week commencing DM/£
1990
October 8 3.013
15 2.963
22 2.955
29 2.950
November 5 2.933
12 2.901
19 2.911
26 2.925
December 3 2.894
10 2.872
17 2.872
24 2.884
1991
January 12 2.909
7 2.9205
1 Week commencing Wednesday 2 January.

Mr. Teddy Taylor

To ask the Chancellor of the Exchequer if he will consider withdrawing sterling from the ERM; and if he will make a statement.

Mr. Maples

No.