U.K. RESERVES SHOW RECORD UNDERLYING RISE IN MAY
Britain's gold and currency reserves rose
a record underlying 4.76 billion dlrs in May, following April's
2.9 billion dlrs increase, the Treasury said.
    The underlying trend indicates the level of recent Bank of
England intervention on currency markets to curb sterling's
strength. It was above market expectations which had been for a
rise of between one billion and three billion dlrs.
    The Treasury declined comment on the figures.
    Actual reserves rose 4.87 billion dlrs in May, compared
with April's 2.8 billion increase, to a total value of 34.68
billion dlrs, compared with 29.81 billion at the end of April.
    Borrowings under the exchange cover scheme were 238 mln
dlrs, against April's 66 mln. Repayments under the scheme were
85 mln dlrs, after 90 mln previously, with capital repayments
of eight mln, after three mln last month.
    Repayments of government debt amounted to 33 mln dlrs.
    The underlying reserves increase is net of borrowings and
repayments.
    It was larger than the previous record 3.04 billion dlrs
rise seen in October 1977. The May increase represents the
seventh monthly rise, with reserves up 9.947 billion dlrs in
that period, and up 9.816 billion since the start of 1987.
 REUTER
