Throughout the quarter, with little interruption, sterling was in good demand. Commercial demand from abroad is seasonally high at this time, and a strong revival in the inflow of funds, which began during February, had become well established by the end of the month. Gold and convertible currencies amounting to £80 million were added to the reserves during February, out of which a further repayment to the International Monetary Fund, costing £75 million, was made at the end of the month. Accruals to the reserves continued in March and April; Australia, whose reserves are mainly held in sterling, repaid the equivalent of £63 million in March to the I.M.F., and a further repayment by the United Kingdom, costing £25 million, was made at the end of April.
Published on
01 June 1962
Commentary