intervention currency
1.Sterilisation ? the sale of domestic securities to mop up the excess liquidity generated by official intervention in foreign currency markets ? is not merely feasible, but even highly profitable, if one is prepared to ignore the risk of a large ultimate capital loss.
2.I must emphasize: the Government will, as before, adhere strictly to our long-standing policy of non-intervention in the stock and futures markets . We shall, however, take resolute action to reduce market distortion, if we find that there is an abundantly clear linkage between the speculative activities in the currency market, and those in the stock and futures markets.
