Currency devaluations have caused a USD167 million cost hit to the UK’s project to buy nine Boeing P-8A Poseidon maritime patrol aircraft, according to new data revealed to Jane’s .
A Ministry of Defence (MoD) spokesman told Jane’s on 27 November that foreign exchange fluctuations over the past year had been missed out of the ministry’s annual Defence Equipment Plan report earlier this month because of a “misinterpretation” of programme reporting rules.
The Defence Equipment Plan originally reported GBP207 million (USD264 million) in savings on the P-8 project over the 2017–18 financial year and no foreign exchange costs due to the estimated 20% devaluation in the UK currency against the US dollar since the 2016 referendum voted in favour of the UK leaving the European Union.
Want to read more? For analysis on this article and access to all our insight content, please enquire about our subscription options at ihsmarkit.com/janes