But what about the future? What role are these foreign
banks likely to play in the world of con- vertible currencies which we are always promised foreign holder of sterling will be assured that any pounds he earns or holds can at any time be turned into dollars or any other currency he chooses. It can be argued that most foreign holders of sterling already have this facility now. They can sell any amount of the sterling they earn on one or more of the free exchange markets of the world, such as in Zurich or New York, and get dollars in exchange. At present the rate of exchange they get in these markets is well within the official margins of $2.78 to $2.82. But the difficulty is that there is no guarantee at present that the rate will not drop below the $2.78 level should a sudden crisis arise. Once real convertibility was estab- lished, it is generally believed, both the ability to
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