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Departmental Public Expenditure

Volume 478: debated on Monday 23 June 2008

To ask the Secretary of State for Foreign and Commonwealth Affairs what steps his Department is taking to mitigate the possible effects of foreign exchange movements on his Department's budget; and if he will make a statement. (212037)

The Foreign and Commonwealth Office has recently contracted, through the Bank of England, the forward purchase of 80 per cent. of our forecast net euro and US dollar exposure to the end of the current financial year, providing us with budgetary certainty on this substantial proportion of our budget.

We are looking to identify options for future forward purchases for the remainder of the comprehensive spending review period—2009-10 and 2010-11—including for other currencies.