;
THE STERLING BALANCES
This paper provides some factual information about the sterling balances; their composition; their holders and the international arrangements which bear upon them. It is divided into five main
sections. The first deals with the numerical totals of the sterling
balances and shows some facts about their composition. The second
explains the term overseas Sterling Area and, together with the
third section, gives some history of the sterling balances.
final two sections cover the Basle facility, the Sterling Agreements
and the exchange of letters between the United Kingdom and the EEC
about the future role of sterling.
The
A.
NATURE AND EXTENT OF STERLING BALANCES
1.
The sterling balances are predominantly exchange reserves held
by countries who traditionally have maintained a substantial portion
of their reserves in sterling and have conducted a great deal of their
external business in sterling (the Overseas Sterling Area or OSA).
Of the remainder, small amounts of official reserves are held by the
Non-Sterling Area countries (NSA) and international organisations,
together with the "private" sterling holdings of the OSA and NSA as
illustrated below figures at 31st December.