A
3.
Assuming that there is no difference between the future UK inflation increases and HK's, the cost to HMG in respect of the sterling conversion of the pensioner's HK pension will be as follows
(a) if the exchange rate is fixed at #1 : HK12.8
If prevailing
exchange
rate becomes
Payment by HKG to HMG
Payment by HMG to
pensioner
Cost to HMG
*
f1:
HKD 11
1,746
1,500
-246 (cain)
21:
HKD 12
1,600
1,500
-100 (gain)
1: HKD 13
1,477
1,500
+23
:
1 HKD 14
1,371
1,500
+129
21: HKD 15
1,280
1,500
+220
1: HKD 16
1,200
1.500
-300
(b) if the exchange rate is fixed at ♬1 : HK 11.5
If prevailing
Payment
exchange
by HKG
Payment by HMG to
rate becomes
to HMG
pensioner
1 HKD 11
1,746
1,670
Cost to HMG *
Z -76 (gain)
21: HKD 12
1,600
1.670
70
21: HKD 13
1.477
1,670
1 HKD 14
1,371
1,670
299
1 HKD 15
1,280
1,670
390
21: HKD 16
1,200
1,670
470
The calculations do not reflect the cost of SPOS which would of course be added to arrive at the total amount
of sterling pension which the pensioner may receive under the proposed system. This cost will be offset by the amount of HK pension increases which can exceed the level of UK inflation increases.
:
TO SHA
AC: A CI-II Q6.
ун ESOOH 1009
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