HM Treasury News Release
103/97                                       4 September 1997
_____________________________________________________________

                   THE RESERVES IN AUGUST 1997

The overall level of the UK's official reserves fell by $35
million in August, bringing the end-August reserves to $41,106
million (25,350 million Pounds [1]), compared with $41,141
million (25,127 million Pounds [2]) at the end of July.

The underlying change in the reserves was a rise of $10
million.

The underlying change excludes a number of factors which are
included in the total change:-

 -   There were repayments of borrowing under the
     Exchange Cover Scheme (ECS) of $13 million;
     
 -   HMG debt assigned from Public Sector of $30 million
     
 -   HMG ECU Treasury Bills maturing exceeded those
     issued by $1 million
     
    
     
                                  $ million
     
     End August reserves             41106
     Less
     End July  reserves              41141
     OVERALL CHANGE                    -35
     less adjustments                   45
     UNDERLYING CHANGE                  10
     
          
     
Notes to Editors
     
1.   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. 
     
2.   Because there is a two day settlement lag in the
     foreign exchange market, the August reserves figures
     include transactions for the last two working days of
     July and exclude operations in the last two working
     days of August.
     
3.   The above figures can also be obtained from the Reuters
     Monitor (page TREA), Bridge News (p 170), Telerate
     (p22494) and Topic (p6800).
     
4.   Repayments under the public sector Exchange Cover
     Scheme in July were as follows:-
     

     Organisation                   $ million

     West Midlands County Council      2.0
     Civil Aviation Authority          1.0
     Northern Ireland Dept of Finance  1.5
     Lothian Regional Council          1.2
     Central Regional Council          1.0
     Other smaller repayments          0.5
     
     TOTAL                              13
     
         
     
[1]  When converted at the closing market rate of 
     1 Pound = 1.6215 on 29 August 1997.
     
[2]  When converted at closing market rate of
     1 Pound = 1.6373 on 31 July 1997.