HM Treasury News Release
150/97

2 December 1997

TREASURY AND BANK OPEN UP THE BOOKS

The first edition of a new quarterly report providing greater detail of the UK's holdings of foreign currency and gold was published jointly today by the Treasury and the Bank of England.

The report shows for the first time the size of the UK's forward foreign exchange position and the currency composition of the UK's foreign currency assets.

On publication of the report the Economic Secretary, Helen Liddell said:

"This report is another key step in the Government's drive towards greater transparency in economic policy making.

"Greater openness improves the quality of economic decisions, strengthens their legitimacy and credibility, and reduces the likelihood of unpredictable and counterproductive reactions in financial markets."

The report shows that the level of the Government's reserves, including the forward book was $42.3 billion at end-September, an underlying increase of $50 million on end-June. Net forward holdings of foreign currency were $1.24 billion at end-September.

The level of the Bank of England's holdings of foreign currency and gold was $1.98 billion at end-September.

NOTES TO EDITORS

1. Subsequent quarterly reports will be published on the second working day of the third month after the quarter concerned.

2. The monthly news release on the UK's holdings of foreign currency and gold will continue to be published. From the month ending 31 December the report will also show the Bank of England's holdings.

3. Media copies of the quarterly report are available from the Treasury Press Office on 0171 270 5185 or from the Bank of England Press Office on 0171 601 4411.

4. Non-media copies of the report are available from the Treasury Public Enquiry Unit on 0171 270 4558 or from the Bank of England on 0171 601 4878.

5. If you have access to the Internet you can find this information at http://www.hm-treasury.gov.uk and at www.bankofengland.co.uk.