To ask the Chancellor of the Exchequer pursuant to his answer of 13 November, Official Report, column 625, on exchange rates, if he will publish the available evidence which suggests that the use of foreign currency is fairly stable over time. [16899]
[holding answer 20 November 1997]: The following figures, which are the most recent available, show exports and imports invoiced in foreign currency from 1979–88. It suggests that the proportion of trade invoiced in foreign currency was generally stable over that period, after allowing for a likely once-off adjustment by businesses to the lifting of foreign exchange controls.
Proportion of UK exports invoiced in sterling and foreign currency (by value) 1979–881
| ||||
Year
| Invoiced in currency of destination country2
| Invoiced in US dollars
| Invoiced in other foreign currencies
| Invoiced in sterling
|
| 1979 | 12 | 12 | 2 | 74 |
| 1980 | 11 | 11 | 2 | 76 |
| 1981 | 16 | 9 | 1 | 74 |
| 1982 | 18 | 15 | 2 | 65 |
| 1983 | 19 | 14 | 2 | 65 |
| 1984 | 22 | 15 | 0 | 63 |
| 1985 | 23 | 18 | 0 | 59 |
| 1986 | 26 | 20 | 3 | 54 |
| 1987 | 24 | 19 | 3 | 57 |
| 1988 | 24 | 15 | 3 | 62 |
1Data 1979 based on annual figures; 83–88 based on November transactions except for 1987, which is based on May data. | ||||
2 'Invoiced in currency of destination country' includes US dollar for US/UK trade. | ||||
Proportion of UK imports invoiced in sterling and foreign currency (by value) 1979–881
| ||||
Year
| Invoiced in importing country currency2
| Invoiced in US dollars
| Invoiced in other foreign currencies
| Invoiced in sterling
|
| 1979 | 38 | 21 | 3 | 38 |
| 1980 | 38 | 27 | 3 | 32 |
| 1981 | 41 | 23 | 1 | 3 |
| 1982 | 41 | 22 | 2 | 34 |
| 1983 | 44 | 19 | 2 | 35 |
| 1984 | 41 | 25 | 1 | 34 |
| 1985 | 43 | 24 | 1 | 32 |
| 1986 | 46 | 17 | 2 | 37 |
| 1987 | 46 | 13 | 1 | 40 |
| 1988 | 41 | 16 | 2 | 43 |
Notes:
1 Data 1979–83 annual figures; 83–88 based on September transactions except for 1987 which is based on March data.
2 'Invoiced in currency of importing country' includes US for US/UK trade.
Sources:
'British Business' 31 May 1985, 17 January 1986 and 24 April 1987 (DTI) and 'Business Bulletin' 15 December 1989 (CSO).