CONFIDENTIAL
HONG KONG EXCHANGE
REPORT ON THE ACCOUNTS FOR THE YEAR ENDED
31ST DECEMBER 13/3
The Fund's Balance Sheet as at 31st December, 1973 and its Receipts and Payments Account and Statement of Sterling Investments are attached together with the Certificate and Report of the Director of Audit.
Exchange Rates:
developments in 1973
2.
On February 12th following pressure on the United States dollar it was announced that the dollar
would be devalued by 10 percent. Exécutive Council met on 14th February to consider this development and advised: 'that the IMF be notified that the central rate between
the Hong Kong dollar and the U.3. dollar vill be HK$5,0850 with an upper limit of HK¡4.3706 and a lower limit of
HK$5.1974'.
by 11.11%.
The Hong Kong dollar was therefore revilued The Hong Kong foreign exchange market vis closed from 12th to 14th Febru.ry and transactions were restricted to the purchase and sale of travellers cheques to bona fide travellers.
3.
There vas a substantial run on the United Statés
dollir early in March 1973, and the foreign exchange markets in Europe and Japan were officially closed. The Hong Kong foreign exchange market was closed on 2nd and 3rd March and for the pariod 5th March to 15th March the note issuing banks issued d.ily quot.tions for U.S. dollar business only. Following a series of meetings Belgium, Denmark, France, Gorniny and Holland announced that they would no longer intervene in dollars, but would maint.in stable exchange rates only in terms of their respective currencies. They were joined in this agreemont by Norvay and Sveden. Japan had decided in February 1973 to allow
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