§ 19. Mr. Maurice Macmillan
asked the Chancellor of the Exchequer whether his calculations on the size of the borrowing requirement include the effect of net changes in the swap arrangements between central banks.
§ Mr. Harold Lever
No, Sir. The size of the Central Government's borrowing requirement, or surplus, is not affected by these arrangements.
§ Mr. Macmillan
Can the hon. Gentleman say if there is any relationship between borrowing overseas and the borrowing requirement at home? Can he 1205 also say whether this money is being used to finance the Bank of England's purchases of sterling in support of sterling or simply to replenish the reserves?
§ Mr. Lever
The answer to the first part of the hon. Gentleman's supplementary question is that there is no relationship between borrowing abroad and the Government's borrowing requirement. This is a somewhat complex matter which I should be glad to discuss in detail with him on another occasion. As for the use of this money, it eventually falls into the country's general reserves and, as such, is put to the best possible use.