BRITAIN’S RESERVES

Press, Volume CV, Issue 31028, 6 April 1966, Page 21

BRITAIN’S RESERVES

£27m Decline From Peak (N.Z PA -Reuter—Copyright) LONDON, April 4. Britain’s reserves of gold and other convertible currencies dropped by £27m in March, the first monthly setback for seven months, it was announced today. The Treasury disclosed that the reserves now stand at £1276 compared with February’s £1303. February's record total, however, was boosted by a sizeable transfer to the reserves from the Government’s portfolio of dollar securities. Transactions in March were nn e against the always unsettling background of a General Election. During the month the Bank of England also had to dip into reserves on several occasions to support sterling, while there was also a rise in interest rates in the United States and Canada. Taking these difficulties into consideration, the March reserves total is regarded as far better than expected. Immediate reaction in the foreign exchange market was to lift the pound, which earlier in the day was already gaining some strength against the dollar. Latet the pound lost some ground and closed at 2.7938 (U.S.) dollars—slightly below its closing level last Friday. Apart from a boom in copper shares, the stock market was very quiet, with most shares quoted at lower rales. Notable was a further decline in steel shares—reflecting some anxiety that the Government may trim the proposed compensation terms if and when they renationalise the industry—and a drop in “High street” stores shares, which dealers attributed to a fear that the Government may announce a curb on consumer spending.