§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer if he will list the changes in exchange rate relative to(a) the deutschmark and (b) the ecu allowed to each member of the exchange rate mechanism subsequent to entry giving the date and in each case the relative appreciation or depreciation.
§ Mr. MaplesThe table gives the central rates of currencies on joining the ERM, against the deutschmark and the ECU. For each realignment it gives the date of realignment, the currencies involved, the percentage changes in the central rates of those currencies relative to other currencies, and the new central rates against the deutschmark and the ECU.
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ERM Realignments to the present date Date and currencies Central rate against DM (1 DM =) ECU parity (1 ECU =) 13 March 1979 (starting date) Belgian Franc (BFC) 15.716400 39.456200 French Franc (FFC) 2.309500 5.798310 Italian Lire (LIT) 457.314000 1148.150000 Dutch Guilder (DFL) 1.083700 2.720770 Deutschemark (DM) — 2.510640 Danish Kroner (DKR) 2.822370 70.85920 Irish Punt (IPT) 0.263932 0.662638 24 September 1979: DM +2 per cent.; DKR—2–9 per cent. DM — 2.485570 DKR 2.963480 7.365930 3 December 1979: DKR—4–76 per cent. DKR 3.111650 7.723360 23 March 1981: LIT—6 per cent. LIT 496.232000 1262.920000 5 October 1981: DM, DFL +5.5 per cent.; FFC, LIT —3 percent. DM — 2.049890 DFL 1.105370 2.663820 FFC 2.562120 6.174430 LIT 539.722000 1300.670000 22 February 1982: BFC—8.5 per rent.; DKR—3 per cent. BFC 18.48370 44.696300 DKR 3.384330 8.183820 14 June 1982: DM, DFL +4-25 per cent.; LIT, FFC—2.75 per cent. DM — 2.333790 DFL 1.105370 2.579710 LIT 578.57400 1350.270000 FFC 2.833960 6.613870 22 March 1983: DM +5.5 per cent.; DFL +3.5 per cent.; DKR +2.5 per cent.; BFC +1.5 per cent.; FFC, LIT—2.5 per cent.; IPT—3.5 percent. DM — 2.215150 DFL 1.126730 2.495870 DKR 3.631410 8.044120 BFC 20.028500 44.366200 FFC 3.066480 6.792710 LIT 626.043000 1386.780000 IPT 0.323703 0.717050 22 July 1985: DM, DFL, DKR, BFC, IPT, FFC +2 per cent.; LIT—6 per cent. BFC 20.0285 44.832000 DKR 3.631410 8.128570 DM — 2.238400 FFC 3.066480 6.864020 IPT 0.323703 0.724578 DFL 1.126730 2.522080 LIT 679.325000 1520.600000 7 April 1986: DM, DFL +3 per cent.; BFC, DKR +1 per cent.; FFC—3 per cent. DM — 2.138340 DFL 1.126730 2.409350 BFC 20.425200 43.676100 DKR 3.703320 7.918900 FFC 3.256170 6.962800 4 August 1986: IPT—8 percent. IPT 0.362405 0.764976 12 January 1987: DM, DFL +3 per cent.; BFC +2 percent. DM — 2.058530 DFL 1.126730 2.319430 BFC 20.625500 42.458200 10 June 1989: Entry of Spanish Peseta PTA 65.000000 133.804000
Date and currencies Central rate against DM (1 DM =) ECU parity (1 ECU =) 8 January 1990: LIT adoption of narrow band and -3-7 per cent. LIT LIT 748.217000 1529.700000 8 October 1990: Entry of pound sterling GBP 0.338984 0.696904
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what is his estimate of the valuation in real terms of each currency in the exchange rate mechanism against the deutschmark at the present date compared to the last quarter of 1986.
§ Mr. MaplesThe table gives the estimated real exchange rate at the close of trading on 14 January 1992, for each currency in the ERM, expressed as a percentage of the rate for the last quarter of 1986. The rates have been calculated by comparing movements in the GDP deflator for Germany with those for other ERM members over the period specified in the question, and the movement in exchange rates between the deutschmark and the other currencies.
It should be noted that the results produced by comparisons of this kind depend crucially on the choice of base period, in this case the last quarter of 1986 at which time the sterling exchange rate index was at its lowest since 1975.
Country Real exchange rate against deutschmark at 1986 Q4=100 United Kingdom £ 122.5 France Franc 98.5 Italy Lira 110.6 Belgium/Luxembourg Franc 105.2 Netherlands Guilder 97.5 Denmark Kroner 104.6 Spain Peseta 127.6 Irish £ 102.2