Friday 17 May 2019 4:33 pm | Updated: Wednesday 05 June 2019 8:42 am

UK bolstered foreign currency reserves to highest levels since 1998 ahead of Brexit date

THE UK ramped up its foreign currency reserves to its highest levels since 1998 in the run up to the Brexit deadline in March.

The country’s foreign currency reserves rose 19 per cent to $137.31bn (£107.84bn) in the final quarter of 2018, data from the International Monetary Fund has revealed.

Its reserves fell back to $119.4bn in April after the original Brexit date of 29 March came and went, the figures showed.

Prime Minister Theresa May secured a six-month extension in April, delaying Brexit until at least 31 October.

But the UK added $23.2bn to its foreign currency warchest in the fourth quarter of 2018, the 19 per cent jump was the fastest rise of all major countries.

US reserves remained flat over the same period, while the Swiss Central Bank’s reserves fell slightly.

In a note, Bank of America Merrill Lynch analysts Kamal Sharma and Sebastian Cross said: “We believe there has been a concerted effort by the UK authorities to raise liquidity buffers towards the end of 2018 to counteract the rising risks of a no-deal scenario that were building at the time.”

Sterling hit a four-month low earlier today as talks broke down between Labour and the Tories over the future of Brexit.

The pound reached as low as $1.276 against the dollar, while losing 0.3 per cent against the euro at 87.55p.

The Labour Party today confirmed that its talks with the Conservatives over how to deal with Brexit had fallen apart.

The party’s leader, Jeremy Corbyn, blamed weakness in the government, saying that Prime Minister Theresa May could not guarantee her successor would stick to a deal.

May, meanwhile said Labour could not reach a clear position on Brexit: “We haven’t been able to overcome the fact there isn’t a common position in Labour about whether they want to deliver Brexit or hold a second referendum which could reverse it.”