- 1
value of the securities retained;
and (c) the decision
mentiomed in paragraph ) (1) not to buy investment securities for the time being. As a result the distribu- tion of the Fund's assets diverged substantially from the approved investment policy, as will be seen from the statement it Appendix 2.
(iv)
V
Receipts and Payments Account deficit: 152,506,960.44. Although investment and other income was
nll time record the deficit for the year amounted to 294,005,133.71. The deficit carried forward to 1974 was caused entirely by the compensation payments to the banks under the Exchange Bank Guarantee Jchene. For Although substantial losses on exchange and on the revaluation of investments vere incurred the fund's 1973 income, added to the surplus brought forward from 1972, would have been more thin sufficient to cover these losses and provide a carry forward surplus even without the U.K, Starling (uir intee Agreement receipts. This can be seen from the following Figures:
Encis.
Surplus from 1972
41,4,6,173.27
Gross surplus for 137-
22,977,832. 36
64,476,005.63
Less
Loss on investment
transactions
Exchange differences
15th June, 1974.
35,408,107.79
_6,867, 344.01 62,076,031.80
£2,339,973.33
Doug Los cle
(D.W.A. Blye)
Member and Secretary
Exchange Fund Advisory Committee