HM TREASURY News
Release (PN 43/08) issued by The Government News Network on 6 May 2008
Part I: UK
Government Foreign Currency Assets and Liabilities - April 2008
1. UK Government net reserves fell by $1,122 million in April
2008, bringing the end-April total to $25,979 million (£13,119
million1) compared with $27,100 million (£13,635 million2) at
end-March 2008.
US $ million: market values
End March 2008 End April 2008
Gross Reserves3 61,353 61,416
Liabilities -34,252 -35,437 of which
foreign currency -22,618 -21,344
forwards and swaps (net)4
repo transactions5 -5,832 -9,454
Net reserves6 27,100 25,979
Change in net -1,122 reserves of which
valuation effects -1,120
transactions -2 against sterling of which
UK public sector -489 customers
Other 487
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 April.
Part II:
Bank of England Foreign Currency Assets and Liabilities - April 2008.
Bank of England net holdings of foreign currency and gold fell by
$5 million in April 2008, bringing the end-April total to under a
$1 million compared with $5 million (£2.5million2) at end-March 2008.
US $ million: market values
End March 2008 End April 2008
Assets3, 42,897 35,851
Liabilities -42,893 -35,852 of which
foreign currency -7,650 -6,095
forwards and swaps (net)4
repo transactions5 -849 -160
Net assets6 5 -1
Change in net -5 holdings of which
valuation effects -6
transactions against 1 sterling of which
UK public sector - customers
Other 1
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 April.
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, assets to facilitate the UK's participation in the
TARGET system and other capital items.
1. When converted at a closing market rate of £1 = $1.9802 on 30 April.
2. When converted at a closing market rate of £1 = $1.9874 on 31 March.
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 May 2008 are due for publication on Wednesday
4 June 2008.
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