FRIDAY, MARCH 2, 1984
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BILL PROVIDES FOR FOREIGN EXCHANGE
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THE GOVERNMENT IS PROPOSING TO AMEND THE EXCHANGE FUND ORDINANCE TO PROVIDE IN EXPLICIT TERMS FOR PAYMENT AND REDEMPTION IN RELATION TO CERTIFICATES OF INDEBTEDNESS TO BE MADE IN FOREIGN EXCHANGE.
AT THE SAME TIME, THE GOVERNMENT ALSO PROPOSES TO PROVIDE FOR A MINOR CHANGE IN THE MANNER IN WHICH RESOLUTIONS TO AMEND THE EXCHANGE FUND AGGREGATE BORROWING LIMIT ARE PROPOSED IN THE LEGISLATIVE COUNCIL.
THE PROPOSALS ARE CONTAINED IN THE EXCHANGE FUND (AMENDMENT) BILL 1984, PUBLISHED IN THE GOVERNMENT GAZETTE TODAY (FRIDAY).
A GOVERNMENT SPOKESMAN RECALLED TODAY THAT IN ORDER TO STABILISE THE EXCHANGE RATE, CERTIFICATES OF INDEBTEDNESS HAD, SINCE OCTOBER 17, 1983, BEEN ISSUED AND REDEEMED AGAINST US DOLLARS AT A FIXED RATE OF HK$7.80 TO US$1. THESE CERTIFICATES ARE ISSUED TO THE NOTE-ISSUING BANKS UNDER SECTION 4 OF THE EXCHANGE FUND ORDINANCE AND ARE HELD AS COVER FOR THEIR NOTE ISSUES.
PRIOR TO THESE MEASURES, THE SPOKESMAN CONTINUED, SUCH CERTIFICATES WERE ISSUED AND REDEEMED AGAINST HONG KONG DOLLARS. ALTHOUGH THE NEW ARRANGEMENTS WERE NOT CONSIDERED TO BE CONTRARY TO THE PROVISIONS OF THE ORDINANCE, THE PROPOSED AMENDMENT, IF ENACTED, WOULD REMOVE ALL DOUBT. ACCORDINGLY, IT WAS PROPOSED THAT SUBSECTIONS (1) AND (2) OF SECTION 4 BE AMENDED SO AS TO PROVIDE EXPRESSLY THAT ISSUES AND REDEMPTIONS OF CERTIFICATES OF INDEBTEDNESS MIGHT BE TRANSACTED NOT ONLY IN HONG KONG DOLLARS BUT ALSO IN FOREIGN EXCHANGE AND AT SUCH RATE OF EXCHANGE AS MIGHT BE DETERMINED BY THE FINANCIAL SECRETARY.
THE OPPORTUNITY WAS ALSO BEING TAKEN TO AMEND THE ORDINANCE BY REMOVING AN UNNECESSARY REQUIREMENT THAT RESOLUTIONS TO AMEND THE EXCHANGE FUND BORROWING LIMIT MUST BE PROPOSED IN THE LEGISLATIVE COUNCIL BY THE GOVERNOR HIMSELF, HE ADDED.
THE SPOKESMAN SAID THE BILL WAS EXPECTED TO BE PRESENTED TO THE LEGISLATIVE COUNCIL FOR FIRST AND SECOND READING ON MARCH 14, AND TO GO THROUGH THE REMAINING LEGISLATIVE STAGES ON APRIL 18.
ANYONE WHO WISHES TO COMMENT ON ITS PROVISIONS MAY WRITE TO UMELCO, AT SWIRE HOUSE, 12TH FLOOR, CHATER ROAD, OR TO THE SECRETARY FOR MONETARY AFFAIRS, AT ADMIRALTY CENTRE, TOWER 11, 18 HARCOURT ROAD, WAN CHAI.
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