204/98
2 December 1998
UK OFFICIAL HOLDINGS OF FOREIGN CURRENCY AND GOLD:
Part I: UK Government Reserves - November 1998
The overall level of the UK Government's reserves, including the forward book, fell by $7 million in November, bringing the end-November total to $37,091 million (22,462 million Pounds) compared with $37,099 million (22,146 million Pounds) at the end of October.
There was no underlying change in the reserves including the forward book.
The underlying change excludes capital transactions that are included in the overall change. In November
- there were repayments of $9 million of Exchange Cover Scheme (ECS) borrowing;
- receipts from Government ECU and Euro Treasury Bills issued exceeded capital repayments on those maturing by $2 million; and
- repayment of HMG debt assigned from public sector of $1 million.
$ million
|
Spot |
Forward |
Total |
|
| end-November reserves |
35,496 |
1,596 |
37,091 |
| less | |||
| end-October reserves |
35,504 |
1,595 |
37,099 |
| OVERALL CHANGE |
-8 |
1 |
-7 |
| less adjustments |
8 |
0 |
7 |
| UNDERLYING CHANGE |
0 |
1 |
0 |
1. No intervention operations were undertaken in November.
2. When converted at the closing market rate of 1 Pound = $1.6513 on 30 November 1998
3. When converted at the closing market rate of 1 Pound = $1.6752 on 30 October 1998
Part II: Bank of England Holdings of Foreign Currency and Gold - November The overall level of the Bank of England's holdings of foreign currency and gold, including the forward book, rose by $50 million in November, bringing the end-November total to $ 2,886 million (1,748 million Pounds) compared with $2,836 million (1,693 million Pounds) at the end of October.
There was no underlying change in the level of the Bank of England's holdings including the forward book.
$million
|
Spot |
Forward |
Total |
|
| end-November holdings |
5,472 |
-2,586 |
2,886 |
| less | |||
| end-October holdings |
7,895 |
-5,059 |
2,836 |
| OVERALL CHANGE |
-2,423 |
2,473 |
50 |
| less adjustments |
-2,423 |
2,473 |
50 |
| UNDERLYING CHANGE |
0 |
0 |
0 |
The adjustments to the overall change figure include the change in valuation over the month, changes in holdings arising from changes in foreign currency and gold deposits placed with the Bank by overseas central banks and other customers, changes due to the net effect of foreign exchange swaps conducted in the course of the Bank's money market operations, and other capital items. The foreign exchange swaps are undertaken as a supplement to the Bank's usual money market techniques to provide sterling liquidity to the market, and are purely technical in nature.
3. When converted at the closing market rate of 1 Pound = $1.6513 on 30 November 1998
4. When converted at the closing market rate of 1 Pound = $1.6752 on 30 October 1998.
NOTES TO EDITORS
1. The Quarterly Report on UK Official Holdings of Foreign Currency and Gold, to be published on 2 March 1999 and covering the quarter ending 31 December 1998, will contain further information about the foreign-currency and gold holdings of the Government and the Bank of England. This will include, for each, the currency composition of foreign- currency assets, the size and currency composition of foreign- currency liabilities and information on intervention operations, if undertaken.
2. The Government and Bank of England figures have been produced on the basis of different accounting methodologies. Therefore, no overall total for the two is shown. Details of the accounting methodologies were included in the Quarterly Report published on 3 March 1998 (covering October-December 1997) and will be included in future Quarterly Reports.
3. The underlying change in the Government's reserves 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.
4. Repayments under the Exchange Cover Scheme in November were as follows:
| Organisation |
$ million |
| Strathclyde Regional Council |
4.308 |
| Newcastle County Council |
0.843 |
| Lancashire County Council |
0.555 |
| Clwyd County Council |
0.542 |
| Swansea County Council |
0.520 |
| Other smaller repayments |
1.682 |
| Total |
8.450 |
5. The figures contained in this press release can also be obtained from the Reuters Monitor (page TREA), Bridge News (page 170), Telerate (p22494) and Topic (p6800).