Defence: Procurement
(asked on 13th July 2020) - View Source
Question to the Ministry of Defence:
To ask the Secretary of State for Defence, what the existing FOREX rate is for dollar purchases negotiated by his Department with the Bank of England.
This question was answered on 16th July 2020
We address the impact of foreign exchange using forward purchase contracts agreed with the Bank of England. This mechanism provides budget stability in the forward programme and is not intended to generate gains or savings from the foreign exchange market.
The average Dollar rate secured by the Department through its forward purchase contracts for 2020-21 is 1.326, this covers 80% of the Department's requirement.