2 October 1997
THE RESERVES IN SEPTEMBER 1997
The overall level of the UK's official reserves fell by $91 million in September, bringing the end September reserves to $41,015 million (25,392 million Pounds[1]), compared with $41,106 million (25,350 million Pounds[2]) at the end of August. The underlying change in the reserves was a rise of $17 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 of $107 million;
- HMG ECU Treasury Bills maturing exceeded those issued by $1 million.
| $ million | |
| End September reserves | 41,015 |
| less | |
| End August reserves | 41,106 |
| OVERALL CHANGE | -91 |
| less adjustments | -108 |
| UNDERLYING CHANGE | 17 |
Notes to Editors
- 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.
- Because there is a two day settlement lag in the foreign exchange market, the September reserves figures include transactions for the last two working days of August and exclude operations in the last two working days of September.
- The above figures can also be obtained from the Reuters Monitor (page TREA), Bridge News (p 170), Telerate (p22494) and Topic (p6800).
- The Chancellor announced on 21 September 1997 a new policy of openness on the UK's gold and foreign exchange reserves. Addressing the International Monetary Fund (IMF) Interim Committee in Hong Kong, the Chancellor said he would publish, in due course, a new quarterly report on foreign exchange operations, which would include the UK's forward foreign exchange position. Further details can be found in HM Treasury News Release 112/97. The monthly press release on the Reserves will continue as at present.
- Repayments under the public sector Exchange Cover Scheme in September were as follows:-
| Organisation | $million |
| BNFL | 100.0 |
| West Glamorgan | 0.8 |
| Rotherham | 0.6 |
| West Isles Island Council | 0.6 |
| Borders | 0.6 |
| Civil Aviation Authority | 0.6 |
| Highlands | 0.5 |
| Other Smaller Repayments | 3.5 |
| TOTAL | 107.0 |

