asked the Minister for Finance if he will state, arising from his reply to parliamentary Question No. 12 on 21 May 1980, setting out the amount of the money flow into and out of the Republic between March 1979 and March 1980, the breakdown figures showing the reasons for the outflow of £496.2 million, and the way in which the foreign borrowing by the Government reflects in the inflow of £202 million; and if he will make a statement on the matter.
Written Answers. - Money Inflow and Outflow.
In reply to the Deputy's question of 21 May last, I circulated a note of the monthly changes in official external reserves between March 1979 and March 1980 inclusive. However, as these figures represent the net of all external receipts and payments, it is inappropriate to aggregate the figures for those months when the change is positive and negative respectively and interpret the results as representing gross inflows and outflows respectively for the period, as appears to have been done in the Deputy's question.
Many of the data required to provide a comprehensive breakdown of changes in reserves are not available on anything less than a calender year basis. However over the period March 1979 to March 1980 inclusive the fall in external reserves was £294.3 million. The merchandise trade deficit in the same period was £1553.5 million and net Government foreign borrowing was £698 million implying other net current and capital receipts of £561.2 million.
asked the Minister for Finance the total amount of the money flow into and out of the Republic in the 12 months preceding out entry to the EMS.
Comprehensive data on these flows are not available on anything less than a calender year basis, and even then the detailed balance-of-payments estimates contain a number of unidentified flows. However, the change in the official external reserves, reflecting the net effect of all foreign flows of funds into and out of the country, in the 12 months to end-February 1979, showed an increase of £122.5 million.