§ Sir Geoffrey Finsberg
asked the Chancellor of the Exchequer what is Her Majesty's Government's policy towards the use of forward cover in respect of Government orders placed abroad, in the light of volatile movements in the currency markets.
§ Mr. Ian Stewart
Government Department may reduce their exposure to exchange risk in relation to future payments or receipts by using forward markets where this is practicable. This is subject to the rules set out in section N (paragraphs 110 to 114) ofGovernment Accounting, a copy of which is available in the House of Commons Library.