# = pounds sterling

HM Treasury News Release
162/98                                       5 October 1998
--------------------------------------------------------------

         G22 REPORT ON TRANSPARENCY AND ACCOUNTABILITY
                                
                UK Forward Foreign Exchange Book
                     to be Published Monthly

Speaking today, UK Chancellor of the Exchequer, Gordon Brown
said:

     "I greatly welcome today's report on Transparency and
     Accountability, prepared under the Chairmanship of Bank
     of England Deputy Governor, Mervyn King. The Report
     incorporates many of the recommendations that I have put
     forward over the last year.

     "The Report is clear: transparency and accountability
     help to improve economic performance.

     "I particularly welcome the Report's clear route-map for
     taking forward proposals that I too have been pressing
     for, on implementing the Code of Good Practice on Fiscal
     Policy and establishing a Code of Good Practice on
     Transparency in Monetary and Financial Policy. I hope
     that the IMF will act on these recommendations as a
     matter of urgency.

     "And I strongly support the Report's important
     recommendation that, as part of its regular surveillance
     activity, the IMF should produce and publish a
     Transparency Report summarising the degree to which an
     economy meets internationally recognised disclosure
     standards.

     "The Report makes a specific recommendation that
     countries publish timely, accurate and comprehensive
     information about their foreign exchange liquidity
     position, including their forward books. I can announce
     today that following our opening up the foreign exchange
     book last year, we are now going to publish the forward
     book on a monthly rather than quarterly basis.

     "On Saturday, the G7 called for urgent implementation of
     the Report's recommendations. By our action today in
     bringing forward regular publication of the forward book,
     the United Kingdom has shown its commitment to turning
     words into action."





NOTES TO EDITORS

1.   In response to the crisis in Asia, Finance Ministers and
     Central Bank Governors from 22 significant economies
     (G22) met in Washington in April 1998. In their
     discussions, Ministers and Governors stressed the
     importance of strengthening the international financial
     system through action in three key areas including
     enhancing transparency and accountability.

2.   The Report of the Working Group on Transparency and
     Accountability was published today. A copy of the
     Executive Summary is available on request from the
     Treasury Press Office on 0171 270 5185.

3.   Treasury News Release 112/97 of 22 September announced
     the publication of a new quarterly report on foreign
     exchange operations, which would include the UK's forward
     foreign exchange position. This news release gave
     detailed background information. The first such quarterly
     report was published in December 1997 covering operations
     in the third quarter of 1997.

4.   Today's announcement means that, with immediate effect,
     there will now be monthly reporting of the forward book
     with a month's lag rather than quarterly publication with
     a two month lag. In effect this means that instead of the
     current up to five month lag between forward intervention
     and disclosure, there will now be a lag of only between
     one and two months between forward intervention and its
     subsequent disclosure.

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