§ Mr. Austin Mitchellasked 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 StewartThe 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 Sheldonasked 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. LawsonThere 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.