asked the Minister for Finance the present state of this country's overseas reserves.

I presume the Deputy is referring to the official external reserves. The latest statistics available from the Central Bank show that the reserves at the end of September amounted to £1,112 million.

In view of the possible break of the Irish currency with sterling, the fact that much of our overseas reserves are held in sterling and the possibility that in the light of a break with sterling the Irish punt may be revalued upwards, is the Minister satisfied that the extent of our overseas reserves holding in sterling is prudent at present?

Yes. On the general level of the reserves they are approximately as anticipated and they represent 3.8 months cover on imports which is high by international standards. As to the proportion held in sterling—I do not have the exact percentage—it is by no means the major portion of the reserves. In other words, the major portion of reserves is held in currencies other than sterling.

Has there been a drop in that 3.8 cover in recent times?

There has been some drop.

Is it a significant drop?

I would not think so. It is pretty well in line with what was anticipated.