§ Mr. Teddy TaylorTo 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. MaplesSterling'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 TaylorTo ask the Chancellor of the Exchequer if he will consider withdrawing sterling from the ERM; and if he will make a statement.
§ Mr. MaplesNo.