HC Deb 10 July 1985 vol 82 cc446-7W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer what has been the weighted average exchange rate for the pound sterling against currencies other than the United States dollar each quarter since the beginning of 1979 and each month in the current year.

Mr. Ian Stewart

The information requested is in the table.

Nominal effective rate index (excluding $) (1975 = 100)
Quarter
1979
1st Quarter 79.8
2nd Quarter 84.9
3rd Quarter 88.5
4th Quarter 85.8
1980
1st Quarter 90.4
2nd Quarter 91.9
3rd Quarter 93.5
4th Quarter 97.9
1981
1st Quarter 101.1
2nd Quarter 99.2
3rd Quarter 93.3
4th Quarter 91.2
1982
1st Quarter 94.0
2nd Quarter 93.9
3rd Quarter 96.5
4th Quarter 94.5
1983
1st Quarter 84.7
2nd Quarter 89.6
3rd Quarter 91.3
4th Quarter 89.6
1984
1st Quarter 88.2
2nd Quarter 86.2
3rd Quarter 85.7
4th Quarter 83.3
1985
January 79.9
February 80.5
March 82.9
April 86.9
May 87.8
June 88.9

Mr. Robert Sheldon

asked the Chancellor of the Exchequer what assessment he has made of the effect on international trade caused by sharp fluctuations in exchange rate movements.

Mr. Lawson

There is little empirical evidence that short-term volatility in exchange rates has any significant effect on the volume of international trade. Larger and more persistent movements, however, may lead to changes in the patterns of international trade which are unlikely to be sustainable, and to a dangerous build-up of protectionist pressures.