Sterling link to remain

Press, Volume CXI, Issue 32706, 8 September 1971, Page 17

Sterling link to remain

(N.Z. Press Association—Copgright)

CANBERRA, September 7.

The Australian Government hoped to maintain its decision to link the value of the Australian dollar to sterling, the Federal Treasurer (Mr Snedden) said today.

He said that the Australian dollar had appreciated in value by 2 per cent to 3 per cent by remaining linked with sterling during the current . international monetary situation. Mr Snedden was replying to Mr A. J. Grassby. (A.L.P., N.S.W.), who asked if the dollar had been revalued during the monetary change. “For our part we hope we will be able to maintain our interim decision so that when the time comes we can take our long-term decision," Mr Snedden said. “The final point is that the parity that one country has to other countries is very vital to its economic and trading interests. “When we do take our decision we will take a decision which is in the best interests of the country’s economy and the welfare of its people.” Mr Snedden said that the

Government was determined to take no long-term action which would commit it into the future before it knew all the circumstances of the monetary situation. He said that it could be some time before the parities between currencies settled down.

“Having regard to the fact that no country can remain static it was necessary for us to take a short-term interim decision," he said.

"After close examination we came to the conclusion that what we ought to do was to retain our parity with sterling. “Sterling had been allowed to float on the market We stayed with it” Mr Snedden said that the result had been that, as sterling had revalued in relation to the United States dollar by about 2 per cent to 3 per cent the Australian currency had risen with it.