2.
-3.
Of the official reserves of the OSA the holdings of Central
Ilonetary Institutions (CMI's) about £14 billion is held in British
Government Stocks. The remainder is in bank deposits, UK Treasury
bills and other forms of banking and money market liabilities.
mns. December 1972
Govt.
Stocks
Banking & Money Mrt. Liabilities
TOTAL
Exchange reserves in sterling:-
Overseas sterling countries
Non-sterling countries
International organisation (excluding
Other banking & money market liabilities:-
1,424
1,716
3,140
13
190
203
118
135
253
IMF)
Overseas sterling countries
Non-sterling countries
1,317
970
1,317
970
1,555
4,328
5,893
3. The "private" holdings largely represent working balances con-
nected with the financing of world trade in sterling and liquid asset
of commercial banks and other institutions.
B.
1.
THE OVERSEAS STERLING AREA
Before the 23rd June 1972, when sterling floated and new Exchang
Control arrangements limited capital transfers by UK residents, the
OSA represented those countries to which sterling could be transferre
for all purposes, both capital and current, without formality. This
freedom now applies only to the Republic of Ireland, a fellow member
of EEC, and Gibraltar which has a special relationship with EEC.
2. Until 1967 the currencies of Sterling Area countries were all
related to sterling in some way, either through statutory arrangement
for the issue of currency or through the conversion of