3.2.87
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35
69.
The bulk of the Government's accumulated
fiscal reserves is invested by the Treasury with the
Exchange Fund against the issue by the Fund of
interest-bearing debt certificates.
The Exchange Fund
Ordinance currently limits the amount which the Fund may
rrow from any source at HK$30 billion, but the limit may
bc altered by resolution of the Legislative Council with
the approval of the Secretary of State. Given the prudent
build up which we forecast for our fiscal reserves, it will now be necessary to raise this limit (22), and it is
my intention to move a resolution in this Council for this
purpose.
(22)
The limit was last successively raised from HK$7 billion to HK$30 billion during 1980 and 1981 to accommodate the build up of fiscal reserves then.
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