§ Mr. MitchellTo ask the Chancellor of the Exchequer if he will list the changes in the real and nominal exchange rate of sterling against deutschmark(a) for each quarter of the last three years and (b) in total; and what assessment he has made of the impact of these changes on (i) German exports to the United Kingdom and (ii) the balance of payments between the United Kingdom and Germany. [24732]
§ Mrs. LiddellThe real and nominal exchange rate movements of sterling against the deutschmark from 1994Q4 until 1997Q4 are given in the table. The effects of exchange rate movements on the balance of payments are difficult to isolate. However, recently the UK's deficit on trade in goods with Germany has been similar to its level three years earlier.
Period Nominal exchange rate change percentage, DM/£1 Real exchange rate change percentage, DM/£2 1994Q4–1995Q1 -4.4 -3.3 1995Q1–1995Q2 -4.7 -3 1995Q2–1995Q3 0.9 2.7 1995Q3–1995Q4 -1.3 0 1995Q4–1996Q1 1.3 2.7 1996Q1–1996Q2 3.1 4 1996Q2–1996Q3 0.4 0.9 1996Q3–1996Q4 7.2 8.7 1996Q4–1997Q1 8 9.3 1997Q1–1997Q2 3.7 4.9 1997Q2–1997Q3 4.6 5.8 1997Q3–1997Q4 -0.7 1 Total exchange rate change 18.8 24.3 1 A minus sign denotes depreciation of sterling. 2 Nominal exchange rate changes adjusted for changes in relative consumer prices.
§ Mr. MitchellTo ask the Chancellor of the Exchequer what representations he has made to his counterparts in Germany and France about(a) their monetary and exchange rate policies and (b) the impact of those policies on the exchange rate of the deutschmark and franc against sterling. [24734]
§ Mrs. LiddellThe Chancellor meets his German and French counterparts on a regular basis, including at ECOFIN, where monetary policy and exchange rate issues are regularly discussed.