§ Mr. Austin Mitchell
asked the Chancellor of the Exchequer what undertakings were given to the International Monetary Fund in December 1976 about the management of the exchange rate; and to what extent these have been carried out.
§ Mr. Lawson
The Letter of Intent in December 1976 stated that intervention in the foreign exchange market would be designed to minimise disruptive short-term fluctuations in the rate and to maintain stability in the exchange markets consistently with the continued maintenance of the competitive position of United Kingdom manufacturers both at home and overseas. The undertakings given in this letter ceased to apply following the expiry of the standby in early 1979.