A colloquial term for the sterling exchange rate of the special common market unit of currency adopted, supposedly temporarily, for payments under the Common Agricultural Policy. The C.A.P. includes a provision for the gradual introduction of a common price structure for agricultural products of member countries.
In monitoring this policy, levies are made and subsidies paid by the E.U. through the common budget. The sums involved are calculated in ‘units of account’ and the exchange value of these units will, since the floating of the various European currencies, vary from one country to another. If the U.K. devalues the green pound then the common units will be worth more in terms of the pound sterling and food prices in the U.K. will rise, or more precisely, the prices of those foodstuffs governed by the Common Agricultural Policy will rise.
Reference: The Penguin Business Dictionary, 3rd edt.
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