Under the EEA Act 1979, the EEA's funds may be invested in securities and assets denominated in the currency of any country; in gold; or in Special Drawing Rights (SDRs). Information on the composition of the reserves is published regularly. For more information, see Published information on UK's official reserves.
Consistent with the objectives of the asset allocation process, the EEA's assets consist chiefly of securities issued by the national governments of the United States, euro area countries and Japan.
The EEA also invests in, or makes use of other instruments, including:
- bonds issued by other national governments, supranational organisations and selected official sector agencies;
- foreign currency spot, forward and swap transactions;
- interest rate and currency swaps;
- overnight indexed swaps;
- bond and interest rate futures, swap notes and swap futures;
- sale and repurchase;
- forward rate agreements;
- short-term bank deposits; and
- deposits with the Bank of England.