asked Her Majesty's Government:

When the Bank of England last intervened in support of the exchange rate of the euro; what was the cost of this intervention; and how much of this amount has since been refunded. [HL1023]

Intervention was last undertaken on 22 September 2000 when the Bank of England, acting as the Government's agent, purchased €85 million against £50 million. This action was taken as part of a concerted intervention by the G7 monetary authorities because of the shared concern about the potential implications of movements in the euro for the world economy. This is explained in the UK official holdings of international reserves publication 4 October 2001¹.

The Government do not comment on the cost of individual transactions.

¹ www.hm-treasury.gov.uk/newsroom_and_speeches/press/2000/press_107_00.cfm