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Summary

The Bank spent most days on the foreign exchange market. In the early years of the Bretton Woods system, it still had complete control over the exchange rate. This chapter shows how successful the Bank's interventions were. It also gives an idea of the strength of the Bank compared to the size of the market.

Summary

After officially floating sterling, the Bank was still managing the pound behind the scenes. The Chancellor wanted sterling lower. The Bank therefore nudged the pound downwards with a surprise dollar purchase on 4 March 1976. This intervention was orders of magnitude from usual Bank operations. Private currency dealers got scared and started to follow the Bank and sell sterling. While the Government welcomed the fall at first, it quickly turned into a full-blown currency crisis. And just a few months later, the Government had to beg the IMF for money to prevent the pound collapsing.

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4 - The Bank on the Market

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13 - The 1976 IMF Crisis

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2 results

4 - The Bank on the Market

Summary

13 - The 1976 IMF Crisis

Summary