HC Deb 22 March 1991 vol 188 cc265-6W
Mr. Lawson

To ask the Chancellor of the Exchequer what has been the change in the real £ sterling/ Deutschmark exchange rate, in purchasing power parity terms, between(a) the beginning of March 1988 and entry into the ERM in October 1990 and (b) entry into the ERM and the present.

Mr. Norman Lamont

[holding answer 19 March 1991]: Following is the available information.

Real Deutschmark/ sterling exchange rate
1990 1st quarter 2.70
1990 3rd quarter 2.96
1990 4th quarter 2.98

Inward direct and portfolio investment1 in European Community (EC) countries
In billions of dollars
1983 1984 1985 1986 1987 1988 1989
United Kingdom 7.6 1.5 11.0 17.0 35.1 36.3 49.2
All other EC countries2 26.9 27.0 36.4 30.4 36.4 71.8 128.4
United Kingdom as percentage of all EC countries1 22.0 5.1 23.3 35.8 49.1 33.6 27.2

Source: International Monetary Fund, Balance of Payments, Volume 41, Yearbook, Part 2, 1990, tables C.14 and C.15.

1 Not included elsewhere in IMF returns (See page 5 of Source).

2 Excluding Denmark.

These figures are on a comparable basis to the historical series given in my hon. Friend the Economic Secretary's reply to the hon. Member for Newcastle upon Tyne, East (Mr. Brown) on 22 October 1990 at columns 10–11.