Q.10

CONFIDENTIAL

Unrealised

exchange

and

investment gains fell

by over 14% in 1988 and by another 7% in 1989.

What were the reasons for these huge losses?

A.10

The reductions were mainly due to the overall

appreciation of the US dollar. The realisation

of exchange gains through,switching back into

the US dollar also explains the reductions as

can be seen by the substantial increase in the

accumulated investment surplus.

CONFIDENTIAL

$23

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