Written question asked by Lord Hammond of Runnymede (Conservative) on Thursday, 25 March 2010, in the House of Commons. It was due for an answer on Tuesday, 30 March 2010. It was answered by Sarah McCarthy-Fry (Labour) on Thursday, 8 April 2010 on behalf of the Treasury.

Departmental Public Expenditure

Question: To ask the Chancellor of the Exchequer whether his Department has incurred expenditure on (a) foreign exchange derivatives and (b) consulting on currency hedging strategies in each of the last five years.

Answer: [holding answer 30 March 2010]: Under the Credit Guarantee Scheme, HM Treasury uses foreign exchange derivatives to hedge fee income received for debt issued in foreign currencies. HM Treasury does not incur explicit expenditure on these transactions; any fees charged for the use of these derivatives would be reflected in the level of the foreign exchange gain received. HM Treasury reports on the Credit Guarantee Scheme, and its financial impacts, annually in its Resource Accounts.HM Treasury has not incurred any expenditure on consulting on currency hedging strategies.

Secondary information