| Code | DS/UK/74 |
| Corporate Name | Bank of England Overseas Department |
| Dates | 1964 -1980 |
| OtherFormsOfName | Overseas and Foreign Department (1932 - 1941); Overseas and Foreign Office (1941 - 1957); Central Banking Information Department (1957 - 1964); International Division (1980 - 1994) |
| Activity | In the period between the two World Wars, at the instigation of Montagu Norman (Governor 1920- 1944), the special importance placed by the Bank on relations with other central banks was formalised by the creation in 1927 of a Central Banking Section in the Chief Cashier's Office. The purpose of the Section was to conduct the Bank's relations, both business and diplomatic, with other central banks, and to act as an area where junior staff could learn the business of central banking.
The Overseas and Foreign Department was established in June 1932 following recommendations of the Peacock Committee on the organisation of the Bank, and took over the more complex matters in central banking relations. Transactional matters remained the responsibility of the Cashier's Department.
The departure from the Gold Standard in 1931 significantly diminished the importance of business relations with central banks and the Department tended to focus on more general international issues; the League Loans committee, the BIS and advice to Government.
In 1935 the work of the Department was redefined, the emphasis being placed on studying central banking developments abroad and providing information of all kinds about foreign countries. Assistance was given other countries wishing to establish central banks of their own or to develop their existing ones.
During the Second World War, this work naturally declined, owing to the difficulties in obtaining information and the limited ability to travel. The Department undertook foreign missions aimed at preserving the gold and foreign currency reserves. These were concerned with trying to avoid sterling paid to suppliers just accumulating and encouraging overseas exporters to spend their sterling receipts in the overseas sterling area.
A key function was exchange control, (for which see also the section on Exchange Control) introduced at first under the Defence (Finance) Regulations 1939. In 1941 the Overseas and Foreign Department became part of the Cashier's Department (Exchange Control) and was named the Overseas and Foreign Office. Apart from exchange control, the office was concerned with a wide variety of financial and economic matters including liaison with central banks in exile, relations with Allied Governments and problems arising from the occupation of Axis or neutral territories by the Allies.
International work greatly increased towards the end of the war with planning for post-war reconstruction, the establishment of the Bretton Woods organisations and international monetary agreements, dealing with the sterling balances problem and helping in the establishment of other central banks. This latter activity became quite substantial as British colonies became independent and sought the Bank's advice on central banking matters.
With this increase in workload, in 1957 the Overseas and Foreign Office was brought out of the Cashier's Department and became the Overseas Department, but two years later it was absorbed into the new Central Banking Information Department.
In 1964, the Overseas Department re-emerged as a separate entity. In March 1980, the Overseas Department was split up and re-named the International and Territorial Divisions, however, these International Divisions (as they were more commonly known) continued to operate as one unit. |
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