Written question asked by Teddy Taylor (Conservative) on Thursday, 26 October 2000, in the House of Commons. It was due for an answer on Thursday, 9 November 2000. It was answered by Melanie Johnson (Labour) on Thursday, 9 November 2000 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, What was the cost to the UK of the intervention to purchase euros and the additional purchase of euros by his instruction to the Bank of England to sell gold. (Failed OPQ) - Inc figures. (Further information on 07.12.2000 at 359 c2W)

Answer: Sir Teddy Taylor: To ask the Chancellor of the Exchequer what was the cost to the UK of the intervention to purchase euros and the additional purchase of euros by his instruction to the Bank of England to sell gold. [135984] Miss Melanie Johnson: The $2.1 billion proceeds from the gold auctions held to date have been reinvested in interest-bearing foreign currency assets broadly in the proportions 40 per cent. dollars; 40 per cent. euros; and 20 per cent. yen. The only intervention undertaken, since the euro was launched, was on 22 September 2000 when 85 million was purchased against sterling. To provide a short-term snapshot of the value of these investments would not be meaningful as it would reflect distortions arising from short-term fluctuations in asset prices and currencies.

Secondary information