HM TREASURY News
Release (PN 71/08) issued by The Government News Network on 3 July 2008
Part I: UK
Government Foreign Currency Assets and Liabilities - June 2008
1. UK Government net reserves rose by $462 million in June 2008,
bringing the end-June total to $26,345 million (£13,221 million1)
compared with $25,882 million (£13,097 million2) at end-May 2008.
US $ million: market values
End May 2008 End June 2008
Gross Reserves3 60,642 60,614
Liabilities -34,760 -34,269
of which
foreign currency forwards -20,691 -20,471
and swaps (net)4
repo transactions5 -9,550 -9,173
Net reserves6 25,882 26,345
Change in net reserves 462 of which
valuation effects 459
transactions against 3 sterling of which
UK public sector customers -121
Other 124
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, the Bank, acting as its agent, may intervene in the
foreign exchange market by buying or selling Government 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 June.
Part II: Bank of England Foreign Currency Assets and Liabilities
- June 2008.
1. Bank of England net holdings of foreign currency and gold fell
by $5 million in June 2008, bringing the end-June total to -$2
million (-£1 million1) compared with $3 million (£1.6million2) at
end-May 2008.
US $ million: market values
End May End June
2008 2008
Assets3, 29,864 26,553
Liabilities -29,861 -26,555
of which
foreign currency forwards and -4,249 -2,587
swaps (net)4
repo transactions5 -160 -5
Net assets6 3 -2
Change in net holdings -5 of which
valuation effects -15
transactions against sterling 10 of which
UK public sector customers -
Other 10
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. The
Bank undertook no such intervention operations in June.
3.
Bank of England foreign currency assets and liabilities mainly
arise from the Bank's foreign exchange reserves, deposits
placed with the Bank by overseas central banks and other
customers, and other capital items.
1. When converted at a closing market rate of £1 = $1.9927 on 30 June.
2. When converted at a closing market rate of £1 = $1.9762 on 30 May.
3. In this presentation gross reserves in part 1 and assets in
part 2 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 rounding.
Notes for Editors
Background
1. UK international reserves figures are published in accordance
with the methodology developed by the International Monetary Fund
in the context of revisions to its 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 Special Data Dissemination Standard (assets,
liabilities and derivatives) from July 1999. Past data can be
revised; the most up to date historical data for end-July 1999
onwards can be found on the Bank of England website at http://www.bankofengland.co.uk/statistics/reserves.
Methodology and definitions
3. The Bank of England website
also provides information on the methodology now used and
definitions of the main conventions employed.
A National Statistics publication
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The release of data in this press notice has followed the National
Statistics Code of Practice and Protocol of Release Practices.
Next publication date
5. The figures for July 2008 are due
for publication on Tuesday 5 August 2008.
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