§ Mr. Deakins
asked the Chancellor of the Exchequer why the Bank of England has intervened from time to time in the foreign exchange market, when the sterling rate was otherwise likely to fall.
§ Mr. Lawson
The Government's policy is to leave the exchange rate to be determined by the market. Whether the rate is rising or falling, intervention by the authorities is limited to small-scale smoothing operations, to moderate excessive fluctuations and preserve orderly markets. It is not the practice to publish details of market intervention.