PRESS NOTICE
STERLING AGREEMENTS
1.
The present Sterling Agreements expire on 24 September.
These have provided a valuable element of stability in the
international monetary scene and HMG considers it to be in the
interest of all that this stabilising element be continued for
a further period. But there is still uncertainty about
developments in international monetary affairs, and it would
not be sensible at present to seek to work out substantive
arrangements for a long period ahead. HMG has accordingly
decided to continue for six months to guarantee certain official
sterling reserves.
2.
A message has been sent to the participants informing them
of this. The guarantee will be given in the form of a Government
declaration which is being sent to signatories of Sterling
Agreements now in force. Signatories will be covered by the
guarantee provided that they throughout the period of the
declaration broadly maintain their sterling holdings at present
levels.
3. The guarantee is given at $2.4213. The guarantee will be
implemented if the average of daily rates for sterling in terms
of US dollars throughout the six month period is below the
guarantee rate. Settlement would be in sterling and the amount
would be calculated as the sum necessary to restore the value of
eligible balances calculated at the average rate to their value
calculated at the guarantee rate.