CONFIDENTIAL
17
41.
Paragraph 2 of the investment policy, a copy of which is
at Appendix I, provides that, as a general guideline, the currency spread of assets, other than those denominated in Hong Kong dollars,
should be:
US dollars
Gold
Other currencies
40 100%
2-1/2%
balance
The following table compares the actual distribution of the Fund's
foreign currency assets at 31 December 1991 and 31 December 1990
with the policy guideline:
Actual
31.12.91
Guideline
Actual 31.12.90
US dollars
73.17
40 100%
70.88
Gold
0.28
2-1/2%
0.36
Other currencies
26.55
balance
28.76
100.00
100.00
42.
Paragraph 3 of the investment policy states that foreign
currency assets should be maintained at 15% or more of annual
imports, subject to the proviso that sales of Hong Kong dollars to
maintain foreign currency assets at this level should not hinder the
use of the Fund to regulate the exchange value of the Hong Kong
dollar, and to due regard being given to the need to retain
sufficient Hong Kong dollars for the redemption of
receipts.
placement
43.
As at 31 December 1991, the Fund's foreign currency assets amounted to 28.93% of 1991 total imports (31 December 1990:
29.93%) and to 92.30% (31 December 1990 : 84.15%) of retained
imports. That is to say that the Fund's foreign currency assets
were equivalent to about 48 weeks' (31 December 1990: 44 weeks)
average imports less re-exports.
CONFIDENTIAL