§ Mr. TynanTo ask the Chancellor of the Exchequer if he will make a statement on the Government's policy on its use of derivatives and related financial instruments. [155560]
§ Ruth KellyThe Government uses derivatives to manage interest rate and foreign exchange risk associated with some of its activities. These instruments may include equity swaps, FRAs, exchange rate forwards, currency and interest rate swaps, as well as interest rate futures. the Government does not use these instruments to speculate in the financial markets.