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Exchange Rates

Volume 79: debated on Friday 17 May 1985

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asked the Chancellor of the Exchequer what were the changes in the real exchange of the pound sterling against (a) the United States dollar, (b) the deutschmark and (c) the yen from January 1985 to the most recent available date.

Information on the distribution of income tax reductions resulting from increases in allowance levels is shown in the following table. This has been compiled by comparing estimates of tax yields at 1985–86 levels of incomes with estimates of yields on the same incomes if 1978–79 levels of allowances, indexed according to the statutory formula, were to be substituted for the proposed 1985–86 allowances. The 1978–79 indexed allowances are calculated by reference to movements in the RPI between December 1977 and December 1984 reflecting the statutory formula.

*Real Exchange Rates (percentage changes between January and February 1985)

Per cent.

Sterling/Dollar+2·6
Sterling/Deutschmark-1·0
Sterling/Yen+0·2

* Calculated using bilateral exchange rates and relative wholesale export prices. Real exchange rate data are not available beyond February because no more recent relative export price figures have been released.