Britain’s war chest for emergencies has risen by $25 billion over the past year to protect against market chaos if the country votes to leave the European Union.
The government’s foreign currency reserves have increased by 34 per cent in the past 12 months, from $73.4 billion to $98.2 billion. It was the largest increase in a year since 2001.
The Bank of England holds the reserves predominantly in US dollars. They give it firepower to defend the pound by selling dollars to buy sterling.
Economists said that the move appeared to be an attempt to insure the UK against a disorderly collapse in the pound and potential market mayhem that might follow a Brexit.
A YouGov poll for The Times last week suggested that