# = pounds sterling
HM Treasury News Release
204/98 2 December 1998
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UK OFFICIAL HOLDINGS OF FOREIGN CURRENCY AND GOLD:
Part I: UK Government Reserves - November 1998
The overall level of the UK Government's reserves, including
the forward book, fell by $7 million in November, bringing the
end-November total to $37,091 million (22,462 million Pounds)
compared with $37,099 million (22,146 million Pounds) at the end of
October.
There was no underlying change in the reserves including the
forward book.
The underlying change excludes capital transactions that are
included in the overall change. In November
there were repayments of $9 million of Exchange
Cover Scheme (ECS) borrowing;
receipts from Government ECU and Euro Treasury Bills
issued exceeded capital repayments on those maturing
by $2 million; and
repayment of HMG debt assigned from public sector
of $1 million.
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$ million
Spot Forward Total
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end-November reserves 35,496 1,596 37,091
less
end-October reserves 35,504 1,595 37,099
OVERALL CHANGE -8 1 -7
less adjustments 8 0 7
UNDERLYING CHANGE 0 1 0
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1. No intervention operations were undertaken in November.
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1. When converted at the closing market rate of
1 Pound = $1.6513 on 30 November 1998
2. When converted at the closing market rate of
1 Pound = $1.6752 on 30 October 1998
Part II: Bank of England Holdings of Foreign Currency and Gold - November
The overall level of the Bank of England's holdings of foreign
currency and gold, including the forward book, rose by $50
million in November, bringing the end-November total to $
2,886 million (1,748 million Pounds) compared with $2,836 million
(1,693 million Pounds) at the end of October.
There was no underlying change in the level of the Bank of
England's holdings including the forward book.
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$million
Spot Forward Total
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end-November 5,472 -2,586 2,886
holdings
less
end-October 7,895 -5,059 2,836
holdings
OVERALL CHANGE -2,423 2,473 50
less adjustments -2,423 2,473 50
UNDERLYING CHANGE 0 0 0
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The adjustments to the overall change figure include the
change in valuation over the month, changes in holdings
arising from changes in foreign currency and gold deposits
placed with the Bank by overseas central banks and other
customers, changes due to the net effect of foreign exchange
swaps conducted in the course of the Bank's money market
operations, and other capital items. The foreign exchange
swaps are undertaken as a supplement to the Bank's usual money
market techniques to provide sterling liquidity to the market,
and are purely technical in nature.
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3. When converted at the closing market rate of
1 Pound = $1.6513 on 30 November 1998
4. When converted at the closing market rate of
1 Pound = $1.6752 on 30 October 1998
NOTES TO EDITORS
1. The Quarterly Report on UK Official Holdings of Foreign
Currency and Gold, to be published on 2 March 1999 and
covering the quarter ending 31 December 1998, will contain
further information about the foreign-currency and gold
holdings of the Government and the Bank of England. This will
include, for each, the currency composition of foreign-
currency assets, the size and currency composition of foreign-
currency liabilities and information on intervention
operations, if undertaken.
2. The Government and Bank of England figures have been
produced on the basis of different accounting methodologies.
Therefore, no overall total for the two is shown. Details of
the accounting methodologies were included in the Quarterly
Report published on 3 March 1998 (covering October-December
1997) and will be included in future Quarterly Reports.
3. The underlying change in the Government's reserves 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.
4. Repayments under the Exchange Cover Scheme in November
were as follows:
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Organisation $ million
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Strathclyde Regional Council 4.308
Newcastle County Council 0.843
Lancashire County Council 0.555
Clwyd County Council 0.542
Swansea County Council 0.520
Other smaller repayments 1.682
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Total 8.450
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5. The figures contained in this press release can also be
obtained from the Reuters Monitor (page TREA), Bridge News
(page 170), Telerate (p22494) and Topic (p6800).
6. If you have access to the Internet, you can find this
information at http://www.hm-treasury.gov.uk and at
http://www.bankofengland.co.uk.