TNAG-1270-FCO40-1620-Financial-policy-in-Hong-Kong-1983 — Page 234

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HK$ Coins

3

they are

Coins are a direct obligation of the Hong Kong Government: sold to the public, through the banking system, by the Hongkong and Shanghai Bank, operating as the Government's agent, with no need for the Certificate of Indebtedness mechanism.

The issue and withdrawal of coins is entirely demand-led, with the only restraining factor on the Government's side being an occasional

supply/storage problem.

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Banks' Clearing Accounts

to

The Bankers' Clearing House is operated by the Hong Kong Association

All of Banks (to which all licensed banks in Hong Kong belong). banks are required to hold a current account, denominated in HK$, handle their clearing payments/receipts, either with the Hongkong and Shanghai Bank, or with a "settlement bank" which maintains a clearing account with the Hongkong and Shanghai Bank on behalf of a number of

banks.

Any bank

There is no formal minimum for any such account (unless imposed for account remuneration purposes), nor any formal maximum. facing a shortfall on its clearing account will obtain the necessary

or by borrowing HK$ by borrowing in the local inter-bank market;

from the Hongkong and Shanghai Bank or (if it has one) from its

К

'settlement bank"; or by selling US$ 'for HK$ in the local foreign

exchange market (which operates on a same-day settlement basis).