Bank of England outlines foreign currency reserve financing
The Bank of England has detailed its strategy for financing foreign exchange reserves. This follows a September 2025 announcement to target two benchmark issuances annually.
A structured financing approach
The Bank of England maintains foreign exchange reserves to support its policy objectives, distinct from the Government's reserves which it manages as an agent.
In September 2025, the Bank announced a shift towards financing these reserves through two annual benchmark issuances.
This approach aims for a regular timetable, a high degree of transparency, and involves a dedicated group of banks for marketing and distribution.
The framework ensures a predictable and clear process for managing the Bank's foreign currency holdings, aligning with its broader operational goals.
This structured method enhances market clarity and efficiency in the issuance process, reflecting a commitment to robust financial management practices.
The Bank's reserves play a crucial role in maintaining financial stability and supporting the UK's economic resilience.
Professional market focus
The issuances are subject to FCA/ICMA stabilisation rules, with the target market restricted to ECP/Professionals only.
This market notice is issued under Rule 135e of the US Securities Act of 1933, explicitly stating it is not an offer of securities for sale in the United States, and the Bank does not intend to register them.
Any forward-looking statements in the notice are subject to risks and uncertainties, with no obligation for the Bank to update them.
Distribution is limited to 'relevant persons' in the United Kingdom.
Prospective investors must refer to the forthcoming prospectus, as all investment decisions should rely solely on its information.