§ Dr. TongeTo ask the Secretary of State for International Development what mechanisms exist to alleviate the impact of fluctuating currency rates on overseas development aid. [48897]
§ Clare ShortFor bilateral assistance, the Department for International Development's general policy is to provide agreed inputs, primarily goods and services, and make payment in sterling. Where payments are made in foreign currency, the Department, rather than developing 437W countries, bears the exchange rate risk within our overall financial resources. We do not pay in advance of need, thereby minimising the exchange rate risk.
The Department also bears the exchange rate risk in making contributions to international organisations, including European Commission activities, where these are called in currencies other than sterling.