§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer (1) what is the Government's objective in raising the real exchange rate against the ecu above the February 1993 level; and what assessment he has made of the effect this has had on(a) the profitability of manufacturing in the United Kingdom and (b) exports of manufactures to the EEC;
(2) what was the nominal exchange rate against the ecu in (a) August 1992, (b) February 1993 and (c) June 1994;
(3) what was the percentage increase in the nominal exchange rate against the ecu between February 1993 and January 1994; and what is his estimate of the effect of the increase on the volume of (a) imports and (b) exports of manufactures to the EC.
(4) what account the Government's policy on the rate of exchange against the ecu takes of the United Kingdom share of the market for manufactures in (a) the United Kingdom and (b) the EC.
§ Mr. Nelson[holding answer 28 June 1994]: I refer the hon. Member to the answer I gave him on 21 March 1994, Official Report, column 15, which provides a reference to data which can be used to calculate the sterling exchange rates and percentage change requested.
In the same answer I also made a statement about the role of the exchange rate in monetary policy. The Government have no objective to raise sterling's real exchange rate against the ecu.
581WThe exchange rate is only one factor affecting the volume of imports and exports. It is difficult to isolate the effect of changes in the exchange rate from that of other factors, such as relative prices and activity in the United Kingdom and its trading partners.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what is the Government's policy on the rate of exchange of the pound sterling against the deutschmark.
§ Mr. Nelson[holding answer 28 June 1994]: I refer the hon. Member to the answer I gave him on 21 March 1994, Official Report, column 15.