Written question asked by Lord Beamish (Labour) on Thursday, 7 July 2022, in the House of Commons. It was due for an answer on Monday, 11 July 2022. It was answered by Jeremy Quin (Conservative) on Thursday, 14 July 2022 on behalf of the Ministry of Defence.

Defence Equipment: Procurement

Question: To ask the Secretary of State for Defence, for what reason his Department purchases equipment from companies based in the United States in US dollars, rather than pounds sterling.

Answer: It is Ministry of Defence policy to place Sterling denominated, firm price contracts wherever possible, placing the management of the exchange rate risk with the most suitable party. However, certain purchases are undertaken in US Dollars where this is mandated by the US such as Foreign Military Sales, and in US Dollars or other currencies for other Government-to-Government arrangements, or for direct commercial sales where this is assessed to deliver the most viable procurement approach or optimum value-for-money.

Secondary information