§ Mr. Clifton-BrownTo ask the Chancellor of the Exchequer what guidelines are issued to Government Departments and agencies about the use of financial derivatives. [1682]
§ Mrs. Angela KnightNo general guidance is issued to Departments on the use of financial derivatives, except in the area of foreign exchange—in relation to which paragraphs 28.7.5 and 28.7.6 of the "Government Accounting" manual tell Departments that, before starting to use currency forwards, futures and options, they should obtain sufficient expertise and that they must avoid speculation. More generally, accounting officers are required to ensure that public funds are properly and well managed, avoid waste and extravagance and ensure that resources are used efficiently and effectively. Departments are not permitted to invest Exchequer money outside the public sector.
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