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5 June 2000

UK OFFICIAL HOLDINGS OF INTERNATIONAL RESERVES:

Part I: UK Government Foreign Currency Assets and Liabilities - May 2000

1. The UK Government's net reserves rose by $351 million in May, bringing the end-May total to $13,995 million (£9,361 million(1)) compared with $13,643 million (£8,764 million(2)) at the end of April.

US $ million: market values
end April 2000 end May 2000
Gross Reserves(3) 37,154 39,147
Liabilities -23,510 -25,152
of which
foreign currency forwards and swaps (net)(4) -4,793 -5,858
o/a repo transactions(5) -1,026 -1,560
Net reserves(6) 13,643 13,995
Changes in net reserves of which 351
valuation effects 359
transactions against sterling of which -8
UK public sector customers -154
other 146

2. As set out in the Chancellor's letter of 6 May 1997 to the Governor of the Bank of England, if the Government so instructs then the Bank, acting as its agent, may intervene in the foreign exchange market by buying or selling the government's foreign exchange reserves. If intervention is undertaken, the monthly press release will provide details of the amount and date of the intervention and an explanation of why it was undertaken. No intervention operations were undertaken in May.

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Part II: Bank of England Foreign Currency Assets and Liabilities - May 2000

1. The Bank of England's net holdings of foreign currency and gold were unchanged in May, bringing the end-May total to $82 million (£55 million(7)) compared with $82 million (£53 million(8)) at the end of April.

US $ million: market values
end April 2000 end May 2000
Gross Reserves(9) 9,293 8,854
Liabilities of which -9,211 -8,772
foreign currency forwards and swaps (net)(10) 23 35
o/a repo transactions(11) 0 0
Net reserves(12) 82 82
Changes in net reserves of which 0
valuation effects 1
transactions against sterling of which 0
UK public sector customers 0
other 0

Notes to Editors

1. The figures for June 2000 will be published on Wednesday 5 July 2000.

2. The UK's international reserves are now being published in accordance with methodology developed by the International Monetary Fund in the context of revisions to their Special Data Dissemination Standard (SDDS), and the G10 central banks in their report "Enhancing transparency regarding authorities' foreign currency liquidity position".

3. The United Kingdom began to disclose additional information on its foreign currency assets and liabilities from July 1999: data for end-July 1999 onwards can be found on the Bank of England's web-site at:

External links

4. The Bank of England's web-site also provides information on the methodology now used and definitions of the main conventions employed.

5. If you have access to the Internet, you can find this news release and other Treasury information on this website.

1. When converted at the closing market rate (5pm) of £1 = $1.4950 on 31 May 2000.
2. When converted at the closing market rate (5pm) of £1 = $1.5567 on 28 April 2000.
3. In this presentation gross reserves exclude marked to market valuation of foreign currency forwards and swaps. These derivatives are shown (excl sterling leg) within liabilities.
4. Net present value of foreign currency forwards, interest rate and cross currency swaps (excl sterling leg).
5. Market value of liabilities to repay foreign currency received in repo transactions.
6. Figures may not sum due to roundings.

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Press Notices 2000 January to June Index