THE RESERVES IN AUGUST 1997

The overall level of the UK's official reserves fell by $35 million in August, bringing the end-August reserves to $41,106 million (25,350 million Pounds ^[1]), compared with $41,141million (25,127 million Pounds ^[2]) at the end of July.

The underlying change in the reserves was a rise of $10 million.

The underlying change excludes a number of factors which are included in the total change:-

There were repayments of borrowing under the Exchange Cover Scheme (ECS) of $13 million;
HMG debt assigned from Public Sector of $30 million
HMG ECU Treasury Bills maturing exceeded those issued by $1 million

	$ million
End August reserves	41106
Less
End July reserves	41141
OVERALL CHANGE	-35
less adjustments	45
UNDERLYING CHANGE	10

Notes to Editors

1. The underlying change is the result of a variety of transactions, both debits and credits, including, for example, transactions for Government departments,      transactions with other central banks, and interest receipts and payments. For these reasons, the underlying change should not be taken as an indication of market intervention.

2. Because there is a two day settlement lag in the foreign exchange market, the August reserves figures include transactions for the last two working days of July and exclude operations in the last two working days of August.

3. The above figures can also be obtained from the Reuters Monitor (page TREA), Bridge News (p 170), Telerate (p22494) and Topic (p6800).

4. Repayments under the public sector Exchange Cover Scheme in July were as follows:-

Organisation	$ million
West Midlands County Council	2.0
Civil Aviation Authority	1.0
Northern Ireland Dept of Finance	1.5
Lothian Regional Council	1.2
Central Regional Council	1.0
Other smaller repayments	0.5
TOTAL	13

[1] When converted at the closing market rate of 1 Pound = 1.6215 on 29 August 1997.
[2] When converted at closing market rate of 1 Pound = 1.6373 on 31 July 1997.

Press Notices 1997 July to December index