4 November 1997
THE RESERVES IN OCTOBER 1997
The overall level of the UK's official reserves fell by $2,445 million in October, bringing the end October reserves to $38,570 million (23,005 million Pounds[1]), compared with $41,015 million (25,392 million Pounds[2]) at the end of September.
The underlying change in the reserves was a rise of $7 million.
The underlying change excludes a number of factors which are included in the total change:-
- 5.5bn Deutsche Mark bond matured: $2,982 million
- There were repayments of borrowing under the Exchange Cover Scheme of $9 million
- Revaluation arising from EMI Swap resulting in a reduction of $17 million
- HMG debt assigned from public sector of $12 million
- HMG ECU Treasury Notes issued were $568 million
| $ million | |
| End October reserves | 38,570 |
| less | |
| End September reserves | 41,015 |
| OVERALL CHANGE | -2445 |
| less adjustments | 2452 |
| UNDERLYING CHANGE | 7 |
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 October reserves figures include transactions for the last two working days of September and exclude operations in the last two working days of October.
- 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 October were as follows:-
| Organisation | $ million |
| Strathclyde Regional Council | 3.9 |
| Lothian Regional Council | 1.1 |
| Lancashire County Council | 0.8 |
| Tayside Regional Council | 0.6 |
| Other Smaller Repayments | 2.7 |
| TOTAL | 9.1 |
[1] When converted at the closing market rate of 1 Pound = 1.6766 on 31 October 1997
[2] When converted at the closing market rate of 1 Pound = 1.6153 on 30 September 1997