Peter King, owner of the Leather Exports Company $($US$-$based$),$ is concerned about the value of the British pound over time because his firm receives British pounds as payment for leather exported to the United Kingdom. He recently read that the Bank of England $($the central bank of the United Kingdom$)$ is likely to intervene directly in the foreign exchange market by flooding the market with British pounds.

$1.$ Forecast whether the British pound will weaken or strengthen based on the information provided.

$2.$ How would the performance of the Leather Exports Company be affected by the Bank of England's policy of flooding the foreign exchange market with British pounds $($assuming that it does not hedge its exchange rate risk$)$