The change in the annual result is primarily ascribable to foreign currency gains totalling NOK 6 390.8 million in 1997, compared with currency losses amounting to NOK 4 443.3 million last year. Interest income from foreign investment came to NOK 13 161.3 million, an increase of NOK 2 610.3 million on 1996.

Interest payments to the Treasury amounted to NOK 4 793.2 million against NOK 3 356.6 million in 1996.

In accordance with existing guidelines, NOK 3 811.0 million was transferred from the Transfer Fund to the Treasury. Norges Bank's transfers to the Treasury are based on an average of the Bank's allocations to the Transfer Fund in the three preceding years.

At the end of 1997, Norges Bank's international reserves amounted to NOK 172 067 million measured in terms of market value which, at year-end, was NOK 710 million higher than the book value. The international reserves comprise foreign exchange reserves, gold and claims on the International Monetary Fund.

Net foreign exchange reserves declined by NOK 3.4 billion from end-1996 to end-1997, and came to NOK 161.1 billion at year-end. The reduction primarily reflects central government foreign debt payments. Norges Bank's net purchases of foreign currency came to the equivalent of NOK 66.1 billion in 1997, the greater part of which was transferred to the Government Petroleum Fund.

Norges Bank is responsible for the operational management of the Government Petroleum Fund on behalf of the Ministry of Finance. At the end of the year, the Government Petroleum Fund amounted to NOK 113.5 billion, measured in terms of market value, which was NOK 0.2 billion higher than the book value. The return on the Fund for 1997 totalled NOK 4 873.9 million.