Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of whether the assets of the Exchange Equalisation Account are in excess of what is required after the issue of IMF Special Drawing Rights in 2021.

The reserves have a clearly defined function as set out in the Exchange Equalisation Account (EEA) Act 1979. The purpose of the reserves includes managing undue fluctuations in the exchange rate, providing foreign exchange services for government departments and to meet the UK’s financial commitment to the IMF. The reserves are available to be able to meet any potential calls as set out in the legislation and are held on a precautionary basis in the event of any unexpected shocks.

The government considers the current size of the reserves to be appropriate for meeting the above objectives.