HM Treasury News Release

143/98                                      2 September 1998
--------------------------------------------------------------
                                
  QUARTERLY REPORT ON UK OFFICIAL HOLDINGS OF FOREIGN CURRENCY
                  AND GOLD: APRIL - JUNE 1998 
                                
The Treasury and the Bank of England published today the fourth
edition of the Quarterly Report on UK official holdings of
foreign currency and gold. The report gives details of the
forward foreign exchange position, the currency composition of
foreign currency assets, the size and currency composition of
foreign currency liabilities for the Exchange Equalisation
Account (EEA) and the Bank of England's holdings of foreign
currency and gold.

The report shows that the level of the Government s reserves,
including the forward book was $36.0 billion at end-June, an
underlying reduction of $2 million on end-March.  Net forward
holdings of foreign currency were $1.23 billion at end- June. 

The level of the Bank of England's holdings of foreign currency
and gold was $1.66 billion at end-June.

No intervention operations were undertaken during the quarter to
end June with either the Government's reserves or the Bank of
England's holdings.


Notes to Editors

1.   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.

2.   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.

3.   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.

4.   The quarterly report covering July - September 1998 will be
     published on 2 December 1998. 

# = pounds sterling