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Newsroom & speeches
55/04
03 June 2004
1. The UK Government’s net reserves rose by $157 million in May 2004, bringing the end-May total to $17,507 million (£9,548 million1) compared with $17,351 million (£9,783 million2) at end-April 2004.
|
US $ million: market values
|
|||
| End April 2004 | End May 2004 | ||
|
Gross Reserves3
|
44,454 | 44,428 | |
|
Liabilities
|
-27,104 | -26,920 | |
|
of which
|
|||
| foreign currency forwards and swaps (net)4 | -17,227 | -17,456 | |
| repo transactions5 | -4,069 | -4,011 | |
|
Net reserves6
|
17,351 | 17,507 | |
|
Change in net reserves
|
157 | ||
| of which | |||
| valuation effects | 157 | ||
| transactions against sterling | 0 | ||
| of which | |||
| UK public sector customers | -187 | ||
| Other | 186 | ||
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.
1. The Bank of England’s net holdings of foreign currency and gold fell by $15 million in May 2004, bringing the end-May total to $105 million (£57 million1) compared with $120 million (£68 million2) at end-April 2004.
|
US $ million: market values
|
|||
|
End April 2004
|
End May 2004
|
||
|
Assets3
|
21,222 | 20,411 | |
|
Liabilities
|
-21,102 | -20,305 | |
|
of which
|
|||
| foreign currency forwards and swaps (net)4 | -2,826 | -2,682 | |
| repo transactions5 | 0 | 0 | |
|
Net assets6
|
120 | 105 | |
|
Change in net holdings
|
-15 | ||
| of which | |||
| valuation effects | -14 | ||
| transactions against sterling | 0 | ||
| of which | |||
| UK public sector customers | - | ||
| Other | 0 | ||
2. As set out in the Chancellor’s letter of 6 May 1997 to the Governor of the Bank of England, the Bank may also undertake foreign exchange operations to intervene in support of its monetary policy objective. If intervention is undertaken, the monthly press release will provide details of the amount and date of intervention and an explanation of why it was undertaken. The Bank undertook no such intervention operations in May.
3. The Bank of England’s foreign currency assets and liabilities arise from banking deposits placed with the Bank by overseas central banks and other customers, the net effect of foreign exchange swaps conducted in the course of the Bank’s money market operations, UK participation in the TARGET system, the Bank’s euro Bill and Note programmes, and other capital items. Foreign exchange swaps may be 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. The proceeds of the Bank’s euro Bills are used to finance the provision by it of intra-day liquidity, on a secured basis, to participants in CHAPS euro, as part of the arrangements for TARGET.
1. The UK’s international reserves are being published in accordance with the 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”.
2. The UK began to disclose additional information on its foreign currency assets and liabilities required under the International Monetary Fund’s Special Data Dissemination Standard (assets, liabilities and derivatives) from July 1999. Data for end-July 1999 onwards can be found on the Bank of England’s website at www.bankofengland.co.uk/statistics/reserves.
3. The Bank of England’s website also provides information on the methodology now used and definitions of the main conventions employed.
4. National Statistics is the official source for authoritative, accurate and relevant information on the economy and society. It brings together a vast range of statistical information overseen by the National Statistician. The National Statistics logo is your assurance of statistics produced to the highest professional standards. For more information about National Statistics visit http://www.statistics.gov.uk/. The release of data in this press notice has followed the National Statistics Code of Practice and Protocol of Release Practices.
5. If you have access to the Internet, you can find this news release and other Treasury information on the Treasury website.
6. The figures for June 2004 are due for publication on Monday 5 July 2004.
7. Media enquiries about this press release should be addressed to Simon Moyse in the Treasury Press Office on 020 7270 4420.
8. Public enquiries (non-media) about this press release should be addressed to the Treasury’s Correspondence and Enquiry Unit on
Telephone: 020 7270 4558
Fax: 020 7270 4574
Email: public.enquiries@hm-treasury.gov.uk
9. For general enquiries about National Statistics, contact the National Statistics Public Enquiry Service on
Telephone: 020 7533 5888
minicom 01633 812399
E-mail info@statistics.gov.uk
Fax 01633 652747
Letters Room DG/18
1 Drummond Gate
LONDON
SW1V 2QQ
10. You can also find National Statistics on the Internet.
