To ask the Chancellor of the Exchequer in which of the last 10 years changes in the dollar/ European currency unit exchange rate have had a European Community budget effect of more than 400 million European currency units; and if he will make a statement.
[holding answer 7 March 1988]: The Commission has estimated that, in 1988 prices, a 5 per cent. movement in the dollar/ecu exchange rate has an effect of some 400 million ecu on the European Community budget.The frequency of changes of this magnitude is sensitive to the precise periods compared. On the basis of annual averages, however, the year-on-year change in the dollar/ ecu exchange rate has exceeded 5 per cent. in most years since 1978, the exceptions being 1980 and 1985. In three years the dollar depreciated by more than 5 per cent., whereas in four years the dollar appreciated by more than 5 per cent.