Question to the Ministry of Defence:

To ask the Secretary of State for Defence, for what reason his Department purchases equipment from companies based in the United States in US dollars, rather than pounds sterling.

It is Ministry of Defence policy to place Sterling denominated, firm price contracts wherever possible, placing the management of the exchange rate risk with the most suitable party. However, certain purchases are undertaken in US Dollars where this is mandated by the US such as Foreign Military Sales, and in US Dollars or other currencies for other Government-to-Government arrangements, or for direct commercial sales where this is assessed to deliver the most viable procurement approach or optimum value-for-money.