162/98
5 October 1998
G22 REPORT ON TRANSPARENCY AND ACCOUNTABILITY
UK Forward Foreign Exchange Book to be Published Monthly
Speaking today, UK Chancellor of the Exchequer, Gordon Brown said:
"I greatly welcome today's report on Transparency and Accountability, prepared under the Chairmanship of Bank of England Deputy Governor, Mervyn King. The Report incorporates many of the recommendations that I have put forward over the last year.
"The Report is clear: transparency and accountability help to improve economic performance.
"I particularly welcome the Report's clear route-map for taking forward proposals that I too have been pressing for, on implementing the Code of Good Practice on Fiscal Policy and establishing a Code of Good Practice on Transparency in Monetary and Financial Policy. I hope that the IMF will act on these recommendations as a matter of urgency.
"And I strongly support the Report's important recommendation that, as part of its regular surveillance activity, the IMF should produce and publish a Transparency Report summarising the degree to which an economy meets internationally recognised disclosure standards.
"The Report makes a specific recommendation that countries publish timely, accurate and comprehensive information about their foreign exchange liquidity position, including their forward books. I can announce today that following our opening up the foreign exchange book last year, we are now going to publish the forward book on a monthly rather than quarterly basis.
"On Saturday, the G7 called for urgent implementation of the Report's recommendations. By our action today in bringing forward regular publication of the forward book, the United Kingdom has shown its commitment to turning words into action."
NOTES TO EDITORS
1. In response to the crisis in Asia, Finance Ministers and Central Bank Governors from 22 significant economies (G22) met in Washington in April 1998. In their discussions, Ministers and Governors stressed the importance of strengthening the international financial system through action in three key areas including enhancing transparency and accountability.
2. The Report of the Working Group on Transparency and Accountability was published today. A copy of the Executive Summary is available on request from the Treasury Press Office on 0207 270 5185.
3. Treasury News Release 112/97 of 22 September announced the publication of a new quarterly report on foreign exchange operations, which would include the UK's forward foreign exchange position. This news release gave detailed background information. The first such quarterly report was published in December 1997 covering operations in the third quarter of 1997.
4. Today's announcement means that, with immediate effect, there will now be monthly reporting of the forward book with a month's lag rather than quarterly publication with a two month lag. In effect this means that instead of the current up to five month lag between forward intervention and disclosure, there will now be a lag of only between one and two months between forward intervention and its subsequent disclosure.