Committee Reports::Report No. 06 - Fixing of Representative Conversion Rates in Agriculture and Use of the European Unit of Account in Common Agricultural Policy::19 April, 1978::Appendix


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Committee Reports > List of Committees > Joint > 1978 > Committee on the Secondary Legislation of the European Communities > Report No. 06 - Fixing of Representative Conversion Rates in Agriculture and Use of the European Unit of Account in Common Agricultural Policy

APPENDIX I

CALCULATION OF IRISH MCA TO APPLY FROM 16 JANUARY 1978

	BF	DG	DK	DM
(1) Central Rates 1 UA	48·657	3·355	8·5665	3·1566
£1 = 1·3519 UA
(Irish Green Rate)	×1·3519	×1·3519	×1·3519	×1·3519
(2) Reference Rates £1 =	65·7798	4·5357	11·5811	4·2675
(3) Spot Rates £1 =	63·458	4·3952	11·2035	4·0917
(4) Average % difference between (2) and (3)	3·66	3·20	3·37	4·30

Average of the % for the four currencies				..	..	3·63
Less 1·5% franchise		..	..	..	..	1·50
MCA percentage	..	..	..	..	..	2·13

The percentage depreciation for each currency is obtained by comparing the reference rate (obtained by relating the Irish green rate to the UA values of the snake currencies at their central rates) with the spot rates which are the average market exchange rates of the £ against each of the currencies in the five days ending 10 January. The MCA is then the simple average of these depreciation percentages less the 1·5% franchise (this is a deduction from the MCA for depreciated currencies).

The market rate for the Irish pound is then calculated as 1.30457 (i.e. a rate 3·6% below the green rate).