The Commentary this time is mainly concerned with events during the three months August to October. The outstanding development in this period was the improvement i n the position of sterling from late August, after many months under pressure. Early in September it was announced that further substantial international resources had been made available to back an already strengthening pound. Helped by this, sterling continued to gain ground. The authorities were able to acquire substantial amounts of foreign exchange for the reserves and to make a start both in reducing their outstanding market commitments in forward exchange and in repaying some of the short term swap assistance which they had drawn earlier.