BRITAIN’S RESERVES

Press, Volume CVI, Issue 31077, 4 June 1966, Page 23

BRITAIN’S RESERVES

Shaq) Fall In May

(N.Z.P.A. Reuter—Copyright) LONDON, June 2.

Britain’s reserves of gold and other convertible currencies fell by £3Bm in May twice the amount of the previous month the Government announced today. The May total was £1,219m at the end of the month, compared with £1,257m in April. The setback was the third in successive months. There were falls of £27m in March and £l9m in April. Unsettling

The continuing decline has been attributed in City financial quarters to a series of unsettling influences, including fears about the April budget, the gap between the March 31 election and announcement of the Government’s legislative programme, and the Rhodesian crisis. The full effect of the current national seamen’s strike is not mirrored in today’s figures, but the Bank of England was said to have stepped in at least twice to bolster sterling in foreign exchange dealings soon after the strike started 18 days ago. Only five weeks ago, the Treasury banned use of gold in manufacture of medals, medallions and imitation coins a booming industry in the past two years. As a further step to prevent losses to gold reserves, the Trade Ministry also halted importation of gold coins and medallions, with a few exceptions.