HC Deb 21 February 1985 vol 73 cc568-9W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer whether he will publish in the Official Report particulars of the increase in the real exchange rate against the deutschmark since March 1983, the balance of trade in manufactures with West Germany in 1984 compared with 1970, and his estimate of the effect of the increase in the real exchange rate on the balance in 1985.

Mr. Ian Stewart

Between March 1983 and January 1985, the real sterling exchange rate against the deutschmark is estimated to have appreciated by 7½ per cent. This estimate is based on the movement in producer prices up to November 1984. The increase is wholly accounted for by the faster rise in producer prices in the United Kingdom than in Germany, since the nominal deutschmark/sterling exchange rate in January 1985 (£1=3.58 DM) was almost unchanged from its level in March 1983 (3.59).

The balance of trade in manufactures with West Germany in 1984 was -£5.1 billion of an Overseas Trade Statistics basis which includes the carriage, insurance and freight element of imports but not of exports. The comparable figure in 1970 was -£0.1 billion.