Singapore legislation

Clause 23

Currency Fund

(1)

The Board shall establish a Currency Fund (hereinafter in this Act referred to as “the Fund”) which shall be maintained and managed exclusively by the Board in the manner prescribed in this Act.

(2)

There shall be paid into the Fund —

(a)

all gold, sterling and other foreign currencies received in exchange for currency notes or coins; and

(b)

the proceeds of any transactions under paragraph (c) of subsection (6) of this section, less all expenses incurred in connection therewith.

(3)

Save as otherwise provided in this Act the Fund shall be applied for meeting the redemption of currency and for no other purpose.

(4)

A portion of the Fund shall be held in liquid form and such portion may be determined and varied from time to time by the Board, except that at no time shall less than thirty per cent of the Fund be so retained without the unanimous approval of all members of the Board.

(5)

The liquid portion of the Fund held in accordance with the provisions of subsection (4) of this section shall be held in any or all of the following forms: —

(a)

gold in any form;

(b)

sterling and other foreign exchange in the form of —

(i)

demand or time deposits, maturing within two years, with the Board’s agents or correspondents abroad;

(ii)

bank balances and money at call;

(iii)

Treasury Bills;

(iv)

notes or coins;

(c)

securities, maturing within two years, of or guaranteed by foreign Governments or international financial institutions.

(6)

Notwithstanding anything contained in the preceding subsections, the Board may —

(a)

use any coin held for the account of the Fund for the purpose of having it reminted into current coin;

(b)

pay from the Fund the cost of the purchase of metal to be minted into current coin; and

(c)

sell any coin held for the account of the Fund.

(7)

The value of the Fund for any of the purposes of this Act shall be the current realisable value of the whole of the assets held in the Fund, investments of the Fund being valued at their current market price at the time of valuation; and for the purposes of valuation, the assets shall be converted into dollars at the rate of exchange specified in section 12 of this Act.

Read in full context — Currency Bill →