To ask the Chancellor of the Exchequer if he will list the rise or fall in (a)real and (b) nominal terms of the Deutschmark against (i) sterling and (ii) the US dollar for (1) each three month period in the four years up to the end of March 1998 and (2) in total for that period and indicating the balance of trade with Germany for each period. [39351]
The real and nominal movements in the sterling and dollar rates against the Deutschmark from 1994Q2 until 1998Q1 are given in the table alongside the quarterly UK balance of trade in goods with Germany. The effects of exchange rate movements on trade balances are difficult to isolate. However, recently the UK's deficit on trade in goods with Germany has been similar to its level four years earlier.
| Percentage change on previous quarter | |||||
| DM/Sterling exchange rate | DM/Dollar exchange rate | UK balance trade in goods with Germany (£ million)3 | |||
| Nominal1 | Real2 | Nominal1 | Real2 | ||
| 1994Q2 | -2.3 | -2.9 | -3.5 | -3.8 | -1,068 |
| 1994Q3 | -3.2 | -3.3 | -6.0 | -6.3 | -1,346 |
| 1994Q4 | 1.2 | 0.8 | -1.1 | -0.9 | -1,164 |
| 1995Q1 | -4.4 | -3.3 | -4.3 | -4.2 | -1,282 |
| 1995Q2 | -4.7 | -3.0 | -5.5 | -4.7 | -1,631 |
| 1995Q3 | 0.9 | 2.7 | 2.5 | 3.8 | -1,447 |
| 1995Q4 | -1.3 | 0.0 | -0.6 | 0.3 | -1,567 |
| 1996Q1 | 1.3 | 2.7 | 3.1 | 4.0 | -1,774 |
| 1996Q2 | 3.1 | 4.0 | 3.7 | 5.1 | -1,528 |
| 1996Q3 | 0.4 | 0.9 | -1.6 | -0.3 | -1,484 |
| 1996Q4 | 7.2 | 8.7 | 2.3 | 3.8 | -1,651 |
| 1997Q1 | 8 | 9.3 | 8.1 | 10.0 | -1,407 |
| 1997Q2 | 3.7 | 4.9 | 3.5 | 4.8 | -1,245 |
| 1997Q3 | 4.6 | 5.8 | 5.3 | 6.1 | -1,353 |
| 1997Q4 | -0.7 | 1.0 | -2.7 | -2.5 | -1,372 |
| 1998Q1 | 2.7 | 4.7 | 3.5 | 3.6 | n/a |
| Total change | 16.8 | 22.5 | 5.6 | 8.8 | — |
| 1A minus sign denotes sterling/dollar depreciation. | |||||
| 2 Nominal exchange rate changes adjusted for changes in relative consumer prices. | |||||
| 3A minus sign denotes a deficit. | |||||