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Developing Countries: Currency

Volume 463: debated on Monday 10 September 2007

To ask the Secretary of State for International Development what system his Department uses for recording currency transactions from sterling into local currency for use in developing countries. (146801)

DFID does not keep records of how, or at what rate, its sterling transactions are converted into local currency once they reach their recipient.

The majority of our funding is made in sterling. All transactions in foreign currency are recorded as a sterling equivalent, based on the exchange rate for that day. DFID’s standard payment systems provide the necessary evidence that money has been paid to the intended recipient. All financial aid to overseas governments is paid through Crown Agents Bank which provides documentation demonstrating that the funds have reached the partner government’s Central Exchequer. For non-financial aid our own accounting and banking systems provide this assurance.