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120/01
5
November 2001
UK OFFICIAL
HOLDINGS OF INTERNATIONAL RESERVES:
Part I: UK Government Foreign Currency Assets and Liabilities –
October 2001
-
The UK Government’s
net reserves fell by $257 million in October, bringing the end-October
total to $13,670 (£9,401 million1) compared with $13,927
(£9,475 million2) at the end of September.
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US
$ million: market values
|
|
|
end
September
2001
|
|
end
October
2001
|
|
Gross
Reserves3
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43,162
|
|
40,407
|
|
Liabilities
|
-29,236
|
|
-26,738
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|
of
which
|
|
|
|
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foreign
currency forwards and swaps (net)4
|
-16,486
|
|
-16,067
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repo
transactions5
|
-244
|
|
-193
|
|
|
|
|
|
|
Net
reserves6
|
13,927
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|
13,670
|
|
|
|
|
|
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Change
in net reserves
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|
-257
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|
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of
which
|
|
|
|
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valuation
effects
|
|
-253
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|
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transactions
against sterling
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|
-4
|
|
|
of
which
|
|
|
|
|
UK public
sector customers
|
|
-228
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|
|
Other
|
|
224
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2. As
set out in the Chancellor’s letter of 6 May 1997 to
the Governor of the Bank of England, if the Government so instructs
then the Bank, acting as its agent, may intervene in the foreign exchange
market by buying or selling the Government’s foreign exchange
reserves. If intervention is undertaken, the monthly press release
will provide details of the amount and date of the intervention and
an explanation of why it was undertaken. No intervention operations
were undertaken in October.
Revisions to previously
published figures
3. The break
down of the previously published change in the UK Government’s
foreign currency net reserves figures for August and September 2001
have been revised. These revisions are detailed below. The headline
figures for change in net reserves for August and September 2001 are
not affected.
August 2001
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|
Published
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Revised
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Variance
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Change in
net reserves
|
479
|
479
|
-
|
|
of
which
|
|
|
|
|
valuation
effects
|
450
|
456
|
6
|
|
transactions
against sterling
|
29
|
23
|
-6
|
|
of
which
|
|
|
|
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UK public
sector customers
|
705
|
705
|
0
|
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Other
|
-676
|
-682
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-6
|
September 2001
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|
Published
|
Revised
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Variance
|
|
Change in
net reserves
|
279
|
279
|
-
|
|
of
which
|
|
|
|
|
valuation
effects
|
263
|
281
|
18
|
|
transactions
against sterling
|
16
|
-2
|
-18
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|
of
which
|
|
|
|
|
UK public
sector customers
|
-557
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-557
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0
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Other
|
573
|
555
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-18
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Part II: Bank
of England Foreign Currency Assets and Liabilities – October
2001
The Bank of England’s
net holdings of foreign currency and gold fell by $4 million in October,
bringing the end-October total to $90 million (£62 million1)
compared with $94 million (£64 million2) at the end of
September.
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US
$ million: market values
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end
September
2001
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end
October
2001
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Assets3
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9,544
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9,886
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|
|
|
|
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Liabilities
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-9,450
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-9,797
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of
which
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foreign
currency forwards and
swaps
(net)4
|
-800
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-833
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repo
transactions5
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-70
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-
|
|
|
|
|
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Net
assets6
|
94
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|
90
|
|
|
|
|
|
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Change
in net holdings
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|
-4
|
|
|
of
which
|
|
|
|
|
valuation
effects
|
|
-8
|
|
|
transactions
against sterling
|
|
4
|
|
|
of
which
|
|
|
|
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UK
public sector customers
|
|
-
|
|
|
Other
|
|
4
|
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2. As set out in the Chancellor’s letter of 6 May 1997
to the Governor of the Bank of England, the Bank may also undertake
foreign exchange operations to intervene in support of its monetary
policy objective. If intervention is undertaken, the monthly press
release will provide details of the amount and date of intervention
and an explanation of why it was undertaken. No such intervention
operations were undertaken by the Bank in October.
3. The Bank of England’s foreign currency assets and liabilities
arise from banking deposits placed with the Bank by overseas central
banks and other customers, the net effect of foreign exchange swaps
conducted in the course of the Bank’s money market operations,
UK participation in the TARGET system, the Bank’s euro Bill and
Notes programme, and other capital items. Foreign exchange swaps may
be 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. The proceeds of the Bank’s euro Bills are
used to finance the provision by it of intra-day liquidity, on a secured
basis, to participants in CHAPS euro, as part of the arrangements
for TARGET.
1 When converted
at the closing market rate (4pm) of £1 = $1.4541 on 31 October 2001.
2
When converted at the closing market rate (4pm) of £1
= $1.4699 on 28 September 2001.
3 In
this presentation gross reserves exclude market valuation of foreign
currency forwards and swaps. These derivatives are shown (excl
sterling leg) within liabilities.
4 Net
present value of foreign currency forwards, interest rate and
cross currency swaps (excl sterling leg).
5
Market value of liabilities to repay foreign currency received in
repo transactions.
6 Figures
may not sum due to roundings.
Notes to Editors
Background
1. The UK’s international reserves are now being published
in accordance with the methodology developed by the International
Monetary Fund in the context of revisions to their Special Data Dissemination
Standard (SDDS), and the G10 central banks in their report "Enhancing
transparency regarding authorities’ foreign currency liquidity
position".
2. The UK began to disclose additional information on its foreign
currency assets and liabilities required under the International Monetary
Fund’s Special Data Dissemination Standard (assets, liabilities
and derivatives) from July 1999. Data for end-July 1999 onwards can
be found on the Bank of England’s website at www.bankofengland.co.uk/mfsd/reserves.
Methodology and
definitions
3. The Bank
of England’s website also provides information on the methodology
now used and definitions of the main conventions employed.
A National Statistics publication
4. National Statistics is the official source
for authoritative, accurate and relevant information on the economy
and society. It brings together a vast range of statistical information
overseen by the National Statistician. The National Statistics logo
is your assurance of statistics produced to the highest professional
standards. For more information about National Statistics visit www.statistics.gov.uk.
Internet version
5. If you have access to the Internet, you
can find this news release and other Treasury information at www.hm-treasury.gov.uk.
Next publication date
6. The figures for October 2001 will be published
on Monday 5 November 2001.
Enquiries
7. Media enquiries about this press release should be addressed
to Simon Moyes in the Treasury Press Office on 020 7270 4420.
8. Public enquiries (non-media) about this press release should
be addressed to the Treasury’s Public Enquiry Unit on
Telephone: 020
7270 5188
Fax: 020
7270 4574
Email: public.enquiries@hm-treasury.gov.uk
National
Statistics Public Enquiry Service
9. For general enquiries about National Statistics, contact
the National Statistics Public Enquiry Service on
Telephone: 020
7533 5888
minicom 01633
812399
E-mail info@statistics.gov.uk
Fax 01633
652747
Letters Room
DG/18
1
Drummond Gate
LONDON
SW1V 2QQ
10. You can also find National Statistics on the Internet on www.statistics.gov.uk.
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