To ask the Secretary of State for Foreign and Commonwealth Affairs whether his Department has incurred expenditure on (a) foreign exchange derivatives and (b) consulting on currency hedging strategies in each of the last three years.
Prior to May 2008 the Foreign and Commonwealth Office purchased our foreign currency requirements at the spot rate at the time we needed the currency. From May 2008 we began a foreign currency forward purchase programme. The forward purchase contracts are placed via the Bank of England. HiFX Intelligent Financial Services provide ongoing specialist consultancy support at a cost of £3,000 per month + VAT.