Press Release
U.S. Monetary Authorities Do Not Intervene in FX Market during 1Q 1997
May 8, 1997

NEW YORK—The U.S. monetary authorities did not intervene in the foreign exchange markets during the January-March quarter, the Federal Reserve Bank of New York reported to Congress today. It was the sixth consecutive period in which there was no U.S. intervention in the markets.

During the three months that ended March 31, the dollar appreciated 8.8 percent against the German mark and 6.9 percent against the Japanese yen, and 7.5 percent on a trade-weighted basis against the other G-10 nations' currencies, the report noted.

The report noted that U.S. authorities received final repayment during the period from Mexico on a special medium-term swap arrangement. Mexico repaid $3.5 billion to the Treasury's Exchange Stabilization Fund (ESF) on January 16, closing out the special medium-term swap arrangement that was set up on February 21, 1995.

The report to Congress was presented by Peter R. Fisher, executive vice president of the New York Fed and the FOMC's manager for the system open market account, on behalf of the Treasury and the Federal Reserve System.