Home » Eng Finance » S » Sterling balances

Sterling balances

There are, of course, other Sterling balances besides those held by sterling area member countries as part of their official reserves, these being brought about in the normal course of international trade and through the attractive¬ ness of investment in sterling to other nations. Before the 1939-45 war sterling was a currency much sought after, but in recent times, as the role of sterling as a hard currency or a good reserve currency has virtually disappeared, the importance of sterling balances has considerably diminished; however, the U.K. government may need to bolster or diminish them, depending on the state of the balance of payments.

Reference: The Penguin Business Dictionary, 3rd edt.