Defence: Procurement

(asked on 4th May 2020) - View Source

Question to the Ministry of Defence:

To ask the Secretary of State for Defence, what the total amount of foreign exchange rate losses attached to MOD defence programmes was in the last financial year.


Answered by
Jeremy Quin Portrait
Jeremy Quin
This question was answered on 13th May 2020

As has been longstanding policy under successive Governments the Ministry of Defence buys forward foreign exchange using forward purchase contracts agreed with the Bank of England. The impact of this is that foreign exchange movements are smoothed over time.

Taking the last financial year in isolation, the volatility in exchange rates resulted in an increase of circa £200 million, this is part of normal Departmental business to manage.

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