TNAG-2471-FCO40-3595-Confidential-talks-between-the-UK-and-China-regarding-financ-1992 — Page 137

For discussion on

19 July 1991

CONFIDENTIAL

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AGENDA ITEM (3)

EFAC 5/91

MEMORANDUM FOR

EXCHANGE FUND ADVISORY COMMITTEE

Disclosure of Exchange Fund Accounts

At the last meeting of the Exchange Fund Advisory Committee (EFAC), Members asked for a paper analysing the arguments for and against the public disclosure of more information concerning the Exchange Fund,

Background

2.

Between 1937 to 1940, the total assets of the Fund were published in the Gazette periodically. This practice, however, discontinued since 1940 because of the war. The accumulated earnings of the Fund, and the exchange equalization and other reserves of the Fund are kept confidential.

On the asset side, no information is The total asset size of the Fund and its composition by type of assets or by currency are kept confidential.

published.

3.

Presently, the following liabilities items in the balance sheet of the Fund are published or otherwise known to the public:

Certificates of Indebtedness backing the banknote. issue;

Debt Certificates evidencing transfers from the fiscal reserves;

Coins in circulation;

Exchange Fund Bills outstanding; and

Balance of the banking system,

CONFIDENTIAL

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