Written question asked by Lord Birt (Crossbench) on Monday, 26 September 2022, in the House of Lords. It was due for an answer on Monday, 10 October 2022. It was answered by Viscount Younger of Leckie (Conservative) on Monday, 10 October 2022 on behalf of the Treasury.

Exchange Rates: Dollar

Question: To ask His Majesty's Government what assessment they have made of the main reasons for the long-term decline of the value of the pound against the US dollar.

Answer: Financial market movements are determined by a wide range of domestic and international factors. It is not appropriate for the government to comment on specific currency market movements. The UK does not have an exchange rate target and the Government does not have a desired level for sterling – the price is determined by the market. The UK's macroeconomic framework is based on an inflation target, and it is for the independent Monetary Policy Committee to set monetary policy to meet this target.

Secondary information