Exporters facing risk over currency

The foreign exchange team at Close said the monthly value of UK exports to China more than quadrupled to 592.8m in December 2009, compared to ten years earlier.

There was a 435.9 per cent increase, the highest rise of any of the country's main trading partners. Even between December 2008 and December 2009, the monthly value of exports to China increased by 42.6 per cent, according to Close analysis.

The study also found that the value of goods sold to India per month rose by 146.6 per cent to 305.9m, by 252.5 per cent to 211m to Brazil and 379.7 per cent to 236.9m to Russia over the decade. There was also a growth in exports to the UK's traditional trading partners, such as the US and Europe.

Mark Taylor, head of foreign exchange at Close Brothers, said: "The world has opened up and there are now more sales opportunities for UK businesses.

"However, although this is good news, it also means that UK businesses are exposed to greater currency risk. The currency markets are very volatile at the moment."

The merchant bank, which was set up in 1878, said it had seen a high increase in the number of exporting clients seeking forward contracts, with a decline in clients asking for spot prices.