Investment of fiscal reserve
Hon Thomas Clydesdale
per cent
I that is
6. MR. CLYDESDALE asked:
Question No.
Question As is well known, Government does not account
publicly for the investment and management of the assets and liabilities of the Exchange Fund. At 31st March 1987, 83 of Hong Kong's published reserves (HK$27.4 billion) was deposited with the Exchange Fund, which means that there is no accounting to the public for the investment and management of the assets representing that sum or the gains or losses arising directly therefrom.
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In these circumstances will the Government explain the rationale underlying the policy of depositing public money with the Exchange Fund and why it considers this policy to be in the best interests of the public?
REPLY BY THE HONOURABLE THE FINANCIAL SECRETARY IN LEGISLATIVE COUNCIL : WEDNESDAY 27 APRIL 1988
FINANCIAL SECRETARY:
Sir,
Sc
I would like to clarify the premise on which Mr.
Clydesdale's question is based. It is true that the
Government does not account publicly for the investment and
management of the assets and liabilities of the Exchange
Fund. It is also true that the majority of the accumulated
fiscal reserves is deposited with the Exchange Fund. But
this does not mean that there is no accounting to the
public for the investment and management of the accumulated
themselves.
fiscal reserves
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