1.   The reserves, he said, are necessary in emergencies to help defend the franc.

2.   The spread provides the Bank of France with a protective buffer to defend the franc.

3.   Twice this year the Bank of France has been forced to push short-term interest rates up to defend the franc.

4.   As a result investors began to show renewed confidence in the determination of French authorities to defend the franc.

5.   Martin said that as long as the Bank of France appeared to prefer to increase interest rates to defend the franc, the currency would remain vulnerable.

6.   Many expressed concern that the fight against unemployment may lead to less willingness to defend the franc.

7.   Premier and presidential candidate Edouard Balladur defended the franc in a broadside against his rival Jacques Chirac, implictly accusing him of flirting with laxist policies, on Friday.

8.   That arrangement was set up at the start of the month to help defend the franc by making speculation against the currency more expensive.