There was another thread on here a few days ago on the same basic topic:
http://www.pprune.org/military-aviat...rate-hole.html
On it I asked what I thought was a fairly basic/obvious question:
..Some (most?) of these procurement programs, such as F-35/JSF, run over many years. Presumably we don't pay all the costs up front, but in a series of payments, so do not exchange rate fluctuations effect costs throughout the life of the program, and who is to say that the exchange rate might not be more beneficial in a year or so, saving us money?..
Someone was kind enough to reply saying that I was correct in my assertion.
The dollar/pound exchange rate could get much better from our point of view a short while from now - so alleviating the problem.
Of course, it could also get worse!!
Talk of £3-6 billion black holes are based on a snapshot using today's exchange rate.