andMr. Bruton asked the Minister for Finance his attitude to the development of a new international reserve currency to replace the dollar.

There has been a relative decline in recent years in the role of the dollar in the international monetary system. It is, in fact, an agreed objective of the International Monetary Fund to make the Special Drawing Right, or SDR, the principal reserve asset in the system. As Deputies will be aware, the SDR was introduced in 1969 as an internationally-managed reserve asset to help to introduce greater stability. The objective of making the SDR the principal reserve asset, which I fully support, implies in turn a continuing reduction in the role of the dollar. While the SDR still accounts for only a small percentage of world reserves, a number of specific measures to promote its role have been taken over the past two years and further measures are being considered.

Would the Minister favour the establishment of a European currency equivalent to the dollar to act as a reserve?

That is a separate matter. The Deputy will appreciate that the development of the European Monetary Fund as such, as distinct from the EMS, is as yet under consideration. The development of the European Monetary Fund, as such, as distinct from the role of the ECU within the EMS, is under consideration at the moment. The real contribution to international liquidity is envisaged internationally as being in developing the role of the SDR to which I have referred.

Questions Nos. 5, 6, 7 and 8 have gone for written reply.