MONDAY, JANUARY 30, 1989
1
CENTRAL BANK FUNCTIONS SATISFACTORILY PERFORMED IN HK
BANKS AND MONETARY RELEVANT TO HONG IN HONG KONG UNDER THE SECRETARY FOR MONETARY
ALL OF THE FUNCTIONS PERFORMED BY CENTRAL AUTHORITIES ELSEWHERE, TO THE EXTENT THAT THEY ARE
PERFORMED SATISFACTORILY KONG, ARE BEING EXISTING INSTITUTIONAL FRAMEWORK, THE DEPUTY AFFAIRS, MR JOSEPH YAM, SAID THIS (MONDAY) EVENING.
FOREX IN HIS SPEECH TO THE
CLUB, MR YAM POINTED OUT THAT NOT HONG
NEEDED A HONG KONG
CENTRAL BANK WHETHER OR
OR A MONETARY AUTHORITY WAS A QUESTION OF NO REAL SIGNIFICANCE.
HE SAID THE IMPORTANT QUESTION WAS WHETHER THE FUNCTIONS WERE PERFORMED SATISFACTORILY.
ABOVE-MENTIONED
ARRANGEMENTS INTRODUCED HE NOTED THAT WITH THE NEW ACCOUNTING
THE HONGKONG AND SHANGHAI LAST JULY BETWEEN THE EXCHANGE FUND AND
LATTER QUESTION WAS BANKING CORPORATION, THE ANSWER TO THE
IN THE NO NEED TO TAKE AFFIRMATIVE AND THE GOVERNMENT HAS
ON ADDITIONAL CENTRAL BANKING ROLES NOW PERFORMED BY COMMERCIAL BANKS.
A COMPREHENSIVE ANALYSIS IN THE SPEECH, MR YAM GAVE
ON HOW
PERFORMED BY FUNCTIONS
CENTRAL BANKS AND MONETARY AUTHORITIES ELSEWHERE ARE CURRENTLY PERFORMED IN HONG KONG.
MAINTAIN EXCHANGE
RATE NOW
"OUR MONETARY POLICY OBJECTIVE IS TO STABILITY. WE HAVE OF COURSE THE LINKED EXCHANGE RATE SYSTEM. AND
ARRANGEMENTS, WE ALSO HAVE A MECHANISM, IN THE FORM OF THE ACCOUNTING
OF THE TO ASSIST US IN ACHIEVING THAT OBJECTIVE WITHIN THE FRAMEWORK LINKED EXCHANGE RATE SYSTEM.'
**
MARKET OPERATIONS ARE HE EXPLAINED HOW MONEY THROUGH THE NEW ACCOUNTING ARRANGEMENTS.
NOW CONDUCTED
ALWAYS "THE THEORY BEHIND THEM IS SIMPLE. HOWEVER, ONE MUST BE
MONEY AND FOREIG!! EXCHANGE ON THE ALERT TO WHAT IS GOING ON IN THE
RIGHT TIME. USING MARKETS SO THAT OPERATIONS ARE CARRIED OUT AT THE THE RIGHT INSTRUMENT AND INVOLVING THE RIGHT AMOUNT.
ARE WE "THIS IS ONE OF THE REASONS WHY DEALING ROOM WITHIN THE MONETARY AFFAIRS BRANCH,"
SETTING UP A
HE SAID.
SMALL
BANKS OF
MR YAM ALSO LAID DOWN CERTAIN CRITERIA BY WHICH LICENSED
SERVES AS THE LENDER CAN APPROACH THE EXCHANGE FUND, WHICH NOW LAST RESORT TO THE BANKING SYSTEM, FOR LATE LIQUIDITY ASSISTANCE,
ABOUT NOT NORMALLY
GOVERNMENT WAS TALKING HE EMPHASISED THAT, SINCE THE LAST RESORT LIQUIDITY ASSISTANCE, SUCH ASSISTANCE WOULD BE PROVIDED IF THE MONEY MARKET WAS STILL OPEN.
/FOR PRACTICAL
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