- 3-

Net foreign currency forward transactions outstanding at the end of September amounted to US$6.7 billion. This relatively high figure is due to swap transactions during the third quarter to meet market intervention needs and seasonal drawdowns of fiscal reserves from the Exchange Fund by the Government.

If such forward transactions were excluded in the computation, the amount of foreign currency assets in the Exchange Fund at the end of September 1996 would stand at US$55.4 billion. This is the same level as that recorded at the end of December 1995 but 3.3% less than that at the end of June 1996, reflecting seasonal drawdowns of fiscal reserves.

Exchange Fund Foreign Currency Assets

(US$ bn)

Including

Excluding forward

End of:

transactions

Net forward

transactions

forward transactions

March 95

52.4

(0.2)

52.2

June 95

53.6

53.6

September 95

51.8

2.8

54.6

December 95

55.4

1.8

57.2

March 96

58.1

1.7

59.8

June 96

57.3

2.7

60.0

September 96

55.4

6.7

62.1

End

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