HM Treasury News Release
97/97                                        4 August 1997
_____________________________________________________________

                   THE RESERVES IN JULY 1997

End July reserve figures

The overall level of the UK's official reserves rose by $581
million in July, bringing the end-July reserves to $41,141
million (25,127 million Pounds [1]), compared with $40,559
million (24,380 million Pounds [2]) at the end of June.

The underlying change in the reserves was a rise of $18
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 $4 million;
     
 -   Revaluation arising from EMI swap of $44 million
     
 -   HMG debt assigned from Public Sector of $50 million
     
 -   HMG ECU Treasury Bills maturing exceeded those
     issued by $1 million
     
 -   HMG ECU Treasury Notes issue of $575 million
     
     
                                  $ million
     
     End July reserves               41141
     Less
     End June  reserves              40559
     OVERALL CHANGE                    581
     less adjustments                  563
     UNDERLYING CHANGE                  18
     
          
     
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 July reserves figures
     include transactions for the last two working days of
     June and exclude operations in the last two working
     days of July.
     
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

     Edinburgh County Council     2.0
     Grampian Regional Council    1.0
     Bradford County Council      0.5
     Other smaller repayments     0.5
     
     TOTAL                          4
     
     
     
     
[1]  When converted at the closing market rate of 
     1 Pound = 1.6373 on 31 July 1997.
     
[2]  When converted at closing market rate of
     1 Pound = 1.6636 on 30 June 1997.